What is the difference between stocks and bonds?

Stocks are certificate of ownership of part or all of a corporation. Bonds on the other hand are debt instruments issued to collect funds - debt financing.

A stock offers an ownership stake in a company (equity), while a bond is a kind of a loan made to the company (debt).

In general common stocks have the voting right while bonds don't

Stocks generally have more associated risk and volatility depending on many factors including the company's performance.

Stocks can be eligable for dividends while bonds generate periodic interest.

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Stock is the amount of capital paid into a business by its investors. Stock is divided into shares, which are held by investors in the form of stock certificates. Each share represents a fraction of the total ownership of a company

A stock certificate is a legal document that states the number of shares of ownership that the investor holds in the company, as well as the class of stock owned. There may be a restriction statement on the back of the certificate that restricts the ability of the stockholder to sell the certificate to another investor. Typically, a company must have a registration statement approved by the Securities and Exchange Commission before the restriction can be removed from the stock certificate, which enables the stockholder to sell his shares. 

A company may issue either common stock or preferred stock. Preferred stock has special rights, which can vary by class of preferred stock. These rights typically include a fixed dividend amount.

A bond is a fixed obligation to pay that is issued by a corporation or government entity to investors. Bonds are used to raise cash for operational or infrastructure projects. Bonds usually include a periodic coupon payment, and are paid off as of a specific maturity date. There are a number of additional features that a bond may have, such as being convertible into the stock of the issuer, or callable prior to its maturity date.

 

A bond may be registered, which means that the issuer maintains a list of owners of each bond. The issuer then periodically sends interest payments, as well as the final principal payment, to the investor of record. It may also be a coupon bond, for which the issuer does not maintain a standard list of bond holders. Instead, each bond contains interest coupons that the bond holders send to the issuer on the dates when interest payments are due. The coupon bond is more easily transferable between investors.

Stocks, or shares of stock, represent an ownership interest in a corporation.

Bonds are a form of long-term debt in which the issuing corporation promises to pay the principal amount at a specific date

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Arrow: it is part of the company's money is put to the sale to increase the company's profits as the case of the stock market and is the owner of one share of the company's owners also increases the value of the stock, or less than its value, according to the economic situation of the company.

Bond: be put up at the need for the company for the money or the need for a loan whereupon borrowing from investors in the stock market the sense that the agreement with a bank to put up these bonds in the market people to buy them and thus get the money that you want, instead of borrowing from banks, bonds are considered a financial commitment to the company must pay its value in the last time

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here above many friend has given good answers of your question

basic difference is, stocks are equity products and bonds are debit market product.

stock creates share holder of the company and is more risk is attached to your investment. Bonds, are fixed Income products as agreed upon the maturity, company or sovereign, etc had to pay back your principal money with the agreed coupon/interest,(YTM) etc.My 2 cents. Thanks.

I agree with the answers given by the bayt.com friends.

I agree with the answer provided by Mr. Nuredin Abdelwasie.