Explain the differences between stocks and bonds.

Explain the differences between stocks and bonds. Be sure to include how stocks and bonds are carried on the books of the issuer and then of the buyer. What are the pros and cons for the issuer that issues stocks and bonds.

FYI

Making Investment Decisions

Typically when thinking of investing, we think of buying stocks and/or bonds. Investing is much more than that because we have choices. A company may decide to purchase additional assets or replacement assets for their business or they may decide to invest in a business that is one of their suppliers. They may buy some stock for holding and some for active trading. They may also decide to purchase treasury bills, money market certificates, or jumbo certificates of deposit. to maximize the earning potential of idle funds.

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