Why estimating the value for a bond is easier than estimating the value for common stock?

Because Bond's value depends more on the market yield and value for a common stock depends on various reasons such as sentiments, number of transaction and perception of the traders so it becomes difficult to predict the correct required rate for stocks.

The value of the ordinary share is more difficult than the value of the bond

Both are of different entities but commonly available in market. Bonds value depends on the companies attributes, like goodwil, performance, debits and creidts, profit and loss and overall market shares, hence one can predit that today market will raise for a particular companies bonds or will go down. where as for common stock we cant predict since variaous factors involved. Example take a common stock items like cotton hand gloves having different manufactures and lot of suppliers in market, price will change due to market competition between them and place of supply, raw material used, local taxes, import and export duties places a crucial role in determining the price. every day the prices will change over all one can analyze roughly the price will increase 10% per annum not more than that.

If wrong correct me.

 

Thanks & regards

Dinesh