Anyone want to share some insight? Maybe the pros and cons of each?
03-17-2009, 12:16 PM #1
03-17-2009, 12:21 PM #2
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03-17-2009, 12:25 PM #3This is our world now...the world of the electron and the switch, the beauty of the baud.
"A dollar doesn't seem like much till its your last one." - skinny buckeye
03-17-2009, 12:27 PM #4
03-17-2009, 12:34 PM #5
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The difference has already been mentioned, but the pros and cons briefly are
Pro: Generally speaking has a better long term growth potential
Con: In a bankruptcy you are one of the last people to get paid
Pro: Depending on the type of bond you have stated percentage that the company will pay you over the life of bond until it reaches maturity and you are higher up on the repayment order
Con: Generally speaking from a long term perspective they usually do not return as much as stocks and sometimes if the company goes bankrupt you could basically get very little back.
Those are very basic pros and cons. Bonds can be anywhere from very low risk/yield such as bonds issued by the treasury or companies with high credit rating to high risk/yield bonds (also known as junk bonds) issued by companies that do not have a great credit rating.
Last edited by Ryan1021; 03-17-2009 at 12:38 PM.
03-17-2009, 01:16 PM #6
Thanks guys, I want to use the following "facts" in an essay, can I make sure that these statements are true?
Stockholder - owns a share or shares of stock in a company
Stockholders - partial owners of a company
Stockholder - owns an "equity" interest in the company
Stockholder - entitled to share in the profits according to the stock plan
Stockholder - has a better long term growth potential
Stockholder - has more say
Bondholder - owns a bond certificate of a corporation
Bondholders - lenders or creditors of a company
Bondholders -backed by assets.
Bondholders - don’t own any interest in the business.
Bondholders - do not get to vote on any company decisions
Bondholders – only entitled to receive interest payments and eventually the face amount of the bond at maturity according to the terms of the bond
Bondholders - bankruptcy bond holders are higher up in repayment hierarchy, then preferred shareholders, then common shareholders
04-08-2009, 03:32 PM #7
04-08-2009, 03:34 PM #8
A stock holder takes an equity stake in the company, meaning he becomes a part owner. A bond holder buys corporate debt which the company pays back at an interest rate over time.
Also, the difference right now is bondholders are broke, where as stock holders are almost broke.My log: http://forum.bodybuilding.com/showthread.php?t=111088911