How bond diiffer fom share



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Difference between Bonds and shares?

1 Answer(s)


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The essential difference between shares (equity) and bonds is that investing in shares is about buying partial ownership in a company, as opposed to bonds which involve making a loan to it. When an investor buys shares, the value will tend to reflect the earnings experience of the firm — good and bad. In contrast, bonds can never earn more than its face value.