Many people when investing in stocks they do not understand what stocks and bonds are and do not understand the nature of stocks and bonds or have confusion about stocks and bonds, so today I try to help everyone understand more about stocks and bonds .
Stocks are shares you receive when a company issues a specific number of shares. you have a voice as well as power in the decisions of the business you are holding shares . The more shares you have, the more your voice will be in the big shareholder meeting
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A bond is an amount your business borrows and promises to pay interest on an annual basis in the form of a promissory note. Usually the business will pay you 7 to 10% a year. When you own a bond, the business is your debtor. You have no right to interfere in the business system as well as the decisions of that business.
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I'm sure many of you are still confused about this, I will give a specific category for everyone to see. Suppose there are 2 friends who both invest 5 billion in a transportation company with a value of 10 billion dong. but the two of them have different investments, one will invest in stocks and the other will invest in bonds. Below I will outline the things that businesses may encounter.
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As you can see, investing in stocks is riskier, but the return is also very large. while investing in bonds with lower risk but the return will be lower. But in the case of company bankruptcy, very little or no, you have not looked at the leaders what they did. This is not investment advice. These are my views on stocks and bonds. Readers can give me some suggestions and help me become stronger. Please read my stock articles in the following articles
