Question

Compare characteristics of corporate bonds and stocks. List three to five characteristics.

Minimum 150 words please.

Answer 1

BASIS OF CHARACTERISTICS	CORPORATE BONDS	STOCKS
Definition	Bonds can be defined as a fixed-income loan that a government or corporate entity gives to the investor.	Stocks can be defined as the owner's share or the part of owner's capital in the total capital of the company. It is also known as equity, in a publicly-traded company.
Status of the issuer	If an entity issues a corporate bond, it in fact issues a portion of debt with an agreement to repay it at a fixed interval at a  pre -decided rate of interest .	When a company is issuing stocks, it represents the company is selling a piece of itself in exchange for cash.
Trading Place	The bonds are traded virtually that is over the counter (OTC). There is no dedicated centralized location to trade.	Fresh or new securities are traded in the primary market, where as second hand or any subsequent trading is done in the secondary market.
ISSUER	Bonds are issued by government institutes, Public financial Institutions or companies etc.	Stocks are issued by big companies which are in need of funds and are ready to involve public at large.