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Why Stocks Are Better Than Real Estate ?

In this article Why Stocks Are Better Than Real Estate ? , we present to you an explanation of which is better to invest in stocks or real estate and which is better to invest in real estate and stocks and which is better to invest and details of investing in US bonds and investing in bonds in Canada, Britain, India, Sweden, Russia, USA, Austria, Greece, Turkey, Singapore, New Zealand, Indonesia, Nigeria, Congo and South Africa What are the best bonds in the world, buy bonds, explain how to buy US Treasury bonds, what are the best types of real estate investment, and what is the meaning of investing in real estate? 2021-2022

Many investors and those who invest in stocks and bonds in particular ask many questions about the difference between investing in stocks and bonds and what is the most profitable way

Also, what is the basic difference between bonds and stocks, so in this article we will discuss all the differences that pertain to stocks and bonds

The differences between stocks and bonds are wide and varied, that there are a few investors who know and are aware of the characteristics, differences and strengths of each of them, whether in terms of type, method of dealing, returns, and methods of investing in bonds or stocks, which we will discuss in this article

What are investment stocks?

Investment shares in the company are private ownership of a specific amount of the company's percentage in general

Where these shares have been estimated at a certain financial value according to the company’s reputation and were distributed to investors who wanted to buy shares or value in this company

Not all shares or percentages of companies are available to investors, as certain shares are allocated to investors and shareholders by providing the opportunity and investing in them or trading through them

What are financial bonds?

A financial bond is a security that can also be traded in the market through which it is granted by a certain entity as a result of the fact that the investor has purchased it for a sum of money for a limited period and at a specific date from a certain date to a certain date

As it entails benefits accruing to the investor, which are collected at a specific time agreed upon previously

What is the difference between stocks and bonds

There are many differences between stocks and bonds in terms of trading and investment operations, the most prominent of which are

qualitative difference

The difference between bonds and shares in terms of quality is that the investor buys shares to own a stake in a particular company

While bonds are a loan granted by companies or entities that provide them with specific advance interests

Ratio difference

Because the bonds are fixed on a specific date, the investor gets a financial value from the profits. As for the shares, the investor gets a financial value after the company is finally liquidated

This leads to the fact that the investor does not get his profits until after the liquidation of the company, as the share prices continue to rise or fall

This is what makes a profit, whether by selling them or keeping the shares to increase their price

The difference in terms of investment value

Bonds are a specific financial value that cannot be increased, and the investor does not receive any additional benefits that were not previously agreed upon

While the shares increase in value with time, the process of distributing profits may take place periodically and in some cases the shares are distributed and divided, and in this case the number of shares owned by the investor increases and can be sold at any time according to the investor’s preference

The effect of bankruptcy on bonds and stocks

In the event of a turmoil in the markets that give stocks and bonds, their value will certainly be affected

In stock companies, the company will pay all the debts incurred by it, and then distribute the price of the shares through the remaining amounts it has

In the case of bonds and in the event of bankruptcy, bonds are taken from debts and shares, without incurring any major losses, for example, those contained in stocks

These are the differences between stocks and bonds in general, after reading the article in depth

Stocks are affected by more growth and loss than bonds, and this increases the profit and loss ratio

For bonds, the percentage of profits is certain, but for a specific period of time and with a specific financial value

Therefore, the investor must know exactly the difference between them before determining the most suitable investment for him

Read also:

Real Estate or Stocks Which Will Make You Richer ?

How To Invest Small Amounts of Money in Kenya

Risks of Investing in the Stock Market : The Pros and Cons of Financial Investment

Basics and Principles of Investing : Top 10 Rules of Successful Investing

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