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InterviewSolution
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What Is The Difference Between A Stock And A Bond? |
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Answer» Stock is EQUITY instrument while Bond is debt asset. Since equity is more RISKY associated with MARKET Risk it can provide more returns while Bond is relatively SAFER instrument so it provide predefined interest called “coupon” THOUGH Bond is also associated with Counter Party Risk. Stock is equity instrument while Bond is debt asset. Since equity is more risky associated with Market Risk it can provide more returns while Bond is relatively safer instrument so it provide predefined interest called “coupon” though Bond is also associated with Counter Party Risk. |
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