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What are equities and bonds?

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15th Dec 2009 by Gary

The difference between equities and bonds is one is raising money by selling shares in a company, and the other is raising money through debt. This is why stock or shares in stock are called equities, while bonds are simply a term for using debt to raise money for a specific purpose. Bonds of course have a fixed interest rate, and so could put pressure on a company if things don't go as believed. Equities or stock are better in my estimation because you don't have to pay back anyone other than if they sell the stock, which someone else buys, so you can go about doing business from the money raised, rather than work on ways to pay back the debt raised by bonds.

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26th Oct 2009 In Stocks 1 Answers | 524 Views
Subjects: bonds, equities, equities and bonds,

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