What is the difference between a stock and a bond?
Cfefinances
A stock represents ownership (equity) in a company, while a bond is a loan made to a company or government. Stockholders share in profits and losses; bondholders receive fixed interest payments and the return of principal at maturity.
Think about owning versus lending. A stock is a piece of ownership that shares profits and losses; a bond is a loan that pays fixed interest and returns principal.