Comparison of bonds and safety stock
- Bond is an duty. Its holder doesn’t become a joint owner of the company that bonded it as a stock holder. He becomes the creditor.
- The bond precisely points how much its holder will get on termination of its circulation and how much he will get during this term. Stock hasn’t a fixed nominal cost, only constantly changing market one and they don’t guarantee the fixed periodic income.
- Bond percents are paid first of all from the company’s income. Just after that share dividends are paid if such decision is made. The same payment order takes place when the company is liquidated.
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