Question

what are 5 major differences between stocks and bonds?

what are 5 major differences between stocks and bonds?

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Answer #1
Bonds Stocks
Interest payment Bonds pay a fixed interest payment at regular intervals Stocks do not pay a fixed interest, they pay a dividend whenever declared by the company.
Period of maturity Bonds mature after their stated period expires, they can be issued until a term of 30 years Stocks do not have a period of maturity, they have a perpetual existence like the company.
Form of capital Bonds are a part of debt capital Stocks are a part of equity capital
Treatment upon winding up Bond holders are given priority over stock holders in case of winding up, since they are a form of creditors. Stockholders are the last ones to receive any proceeds of winding up.
Market They are traded over the counter They are traded in stock exchanges.
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