What is a stock? A stock could be described as a share of the ownership of a company.
A stockholder exercises ownership over the assets and earnings of their company. It is a norm among the original investors of a company to sell their stocks to other investors. Stocks are in fact bought and sold every day at major exchanges.
Similarly, what is a bond? A bond is a debt instrument issued by a government, a corporation or other such entities in order to finance important projects.
A bond's issuer pays an interest to investors, which is known as coupon. When the bond matures, the issuer is required to repay the loan to the investor. While corporations issue bonds to finance capital projects, governments issue bonds to pay for public projects.
The following videos will give you a better understanding of how stocks and bonds are dealt in:
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