Thursday, 14 May 2015

Bond Vs. Stock???


Must know the difference!

Bond: Becoming lender. Collect interests and return OF capital.

Stock: Becoming investor. Collect dividends and return ON capital; but can be negative return!



 

 


3 comments:

  1. Simple and precise.

    Good reminder and summary to those who are considering bonds.

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  2. When we definitely NEED that money back on 8th year; then we may want to consider FCL 3.65% bond for return of capital; otherwise why do we need bond for cash flow?

    Another 7 years is a long time in the stock market when this Bull is already 6 yrs old.

    ReplyDelete
  3. Don't just follow the loud music bandwagon without doing deep thinking. Cash flow can also come from possible capital appreciation by selling it.

    ReplyDelete