Question

What are the main differences between the bond markets and stock markets?

What are the main differences between the bond markets and stock markets?

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Answer #1

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1. A stock market is a market where stocks are being trader and investor visit such market to buy stocks that are being issued by corporation listed with the Stock Exchange, Whereas, The bond market is the market bonds issued either by corporation or government are being trader and investor visit such market to buy or sell the bonds.

2. The Major Difference that is between the bond and stock market is that the stock market has central places or exchanges where stocks are bought and sold.

3. The other Major Difference between the stock and bond market is the risk involved in investing or trading in both the market, In case of Stock Market there are risks such as Geopolitical Risk, Currency Risk, Liquidity Risk, Whereas, Bonds Market involves risk such as inflation and Interest Risk.

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