Are you an owner or a lender when you invest in a company?
A share gives an ownership interest, while a company bond creates a creditor claim under its terms. The rights and payment expectations differ, and neither arrangement guarantees a gain.
Questions you could explore
- How do dividends differ from promised debt payments?
- What risks remain even when a payment has been promised?
Start reading
- US Securities and Exchange Commission, Investor.govStocks
Investor.gov explains stocks as ownership and outlines their risks.
- US Securities and Exchange Commission, Investor.govBonds
Its bond guide explains borrowing, promised payments, and default risk.
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