I have started thinking there is not much difference between bonds and stocks. There is no doubt that bonds and stocks are the same since both financial instruments can make investors rich or poor. Yes, bonds can make an investor lose his money when things go wrong with companies which issue them on the Luxembourg Stock Exchange or any other financial exchange. If you are looking to buy bonds, you will probably worry about their coupon rates. Investors worry about interest rates when buying blue chip stocks or growth stocks. While blue chip stocks may not be wholly volatile, they can produce some exact risks as growth stocks. Interest rates make bonds attractive just as coupon rates make bonds enticing to investors who have access to large capital.
Related posts: