Bonds, Preferred Stock & Common Stock | Business
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Bonds, Preferred Stock & Common Stock

Stocks and bonds are two types of security interests that companies
use to raise capital. Shares of stock represent ownership, while bonds
are debt repaid with interest. There are many different types of
stocks and bonds, and both are subject to both federal and state
securities laws. Those with specific questions about stocks or bonds
should discuss them with a legal or securities professional. BondsA
bond functions essentially like a loan. When an organization (business
or government) offers a bond and an investor buys it, the investor
gives money up front to the organization. The organization then pays
interest on the bond, typically in regularly scheduled payments. The
interest paymen