difference between shares and bonds?

December 14, 2022

The essential difference between shares (equity) and bonds is that investing in shares is about buying partial ownership in a company, as opposed to bonds which involve making a loan to it. Stocks are treated as equity instruments, whereas bonds are debt instruments.
Bonds for a term of either 20 or 30 years.
Bonds pay a fixed rate of interest every six months until they mature.
You can hold a bond until it matures or sells it before it grows.
Bonds are typically a more conservative investment. Unlike stocks, bonds come with fixed interest rates that promise a certain return.