In: Finance
Sources to look for difference between bonds and stock are as follows:-
1) In your financial management books
2) On investopedia or wikipedia
3) In portfolio management books
4) In economics books, regarding when they should be bought.
5) You can also see the bloomberg to understand the risk and return associated with the market.
Some of the differences are given below
Stock market | Bond market |
A stock market is a market where equities are traded | A bond market is a market where bonds are bought and sold. |
Stocks pay dividend | Bonds pay coupon rate |
Stock markets experience high volatility in their prices. | Bond markets have securities backed by collateral , so the volatility is less. |
Owing a stock gives you an ownership in the company. | Owning a bond does not give you any ownership. |
As the securities are risky they provide higher return . | As the bonds are less risky , the rate of return is low. |