By Brian M. Reiser Corporate bonds are debt securities that many investors use to earn a return on their money. Unlike government bonds, corporates are issued by companies looking to raise capital. Whereas stocks are shares of an ownership stake in a company, companies that issue bonds do not have to give up any ownership shares.
One way to understand corporate bonds is to draw a distinction between them and stocks. We will look at these two types of financial instruments and draw out their differences. Then we will go over some of the different types of bonds and their features.
Stocks vs Bonds
Two of the …read more