Stocks And Bonds

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Written by:

Joseph S


Date added:

April 22, 2016








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2 / 354


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Emerging companies may prefer issuing stocks to raise capital which facilitates its growth without the burden of increasing dept, on the other hand larger companies may prefer to raise capital by issuing bonds without further splitting of its ownership. Choosing to invest in one form and not the other depends mainly on your investments' goals and your personal nature (i...
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if you're a risk taker or not). Although stocks and bonds can be successful forms of investments, they are not risk-free. Unlike bonds, stocks fluctuate depending on the company's performance. Bondholders are not affected by the company's status as they are paid a fixed return. Bonds can fluctuate according to the fluctuation of the interest rate in the market but are still considered a more secure investment than stocks bearing in mind the risk of not being paid back the principal amount of the bond...
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