shares and bonds

shares and bonds

For the beginning let's see what the bond.
Note that from the Latin means an obligation that is one of the securities. Note obliges a company / country that has issued the bond to compensate on this borrowed sum of the company, the state or a private person who buys the bond. Thus, the company that issued the bond becomes the debtor / borrower of money for the investor, which becomes a lender. What is the action? Shares are securities, which allow their owner(shareholder) to receive part of the profit of the company issuing the shares (joint stock company) in the form of dividends, to participate in the management of the company and on the part of the property during the liquidation of the joint-stock company. What is the difference between stocks and bonds? Let us consider the main difference of the bonds on the stock.
Firstly, bonds earn an income within a strictly defined and always indicated on her period, while shareholders receive the income(dividends) for an indefinite period of time (i.e. up to the sale of shares or liquidation of the company) Notes bring the owner of the income in the form of a per cent, while the dividends of shareholders no way guaranteed. The bonds have a nominal price. It must be written on the bonds is the basis for subsequent recalculations and application of interest. Stocks did not have the face or as it is called nominal prices. Bonds have the redemption price. This price may be different(but may match) with a face that depends on the conditions of the loan. For the price of a bond is redeemed organization or a state after the expiry of the term of the loan. Shares of such prices do not have.
And shares and bonds have a market value of which is determined by current conditions in the market of shares or bonds.

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