Advantages and disadvantages of Stocks
Advantages and disadvantages of Bonds
compare them and tell the diffrence
2006-10-19 15:51:33 · 2 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Thats big topic. The key difference is that stocks are ownership of a company. Bonds are debt financing. Completely different things.
2006-10-19 15:54:25 · answer #1 · answered by sdh0407 5 · 0⤊ 0⤋
What it boils down to is that rich people don't need to get rich, so they are not willing to take high risks to earn a superior profit. Bonds are a holding place for huge sums of money that will hopefully stay ahead of inflation. If inflation is 3.5% and bond yields are 6.5%, their net yield is a paltry 3%/yr.
If you are not rich, or financially comfortable or independent, you will never get that way at 3% yield.
2006-10-19 23:07:35 · answer #2 · answered by dredude52 6 · 0⤊ 0⤋