Question

What are the differences between owning a corporate bond or a stock? What are the potential risks or rewards for each? Which do you think is better and why?

Answer 1

Corporate bond entitlement privilege bond holder with periodic payment with certainty whereas stock holder is entitled to uncertain dividends and capital gain/ loss.

Corporate bonds provide ownership on the assets of company whereas stock holders has ni such privileges

Stocks are volatile and provide higher returns compared to bonds hence stocks are riskier than bond always.

It depends upon the risk profile of investor if he is risk lover he will prefer stocks over bond and in case of risk averse investor he will choose bond over stocks