why would a company raise money with a stock rather than a bond or vice versa?
Also, why would someone buy a bond rather than a piece of stock?
Bond best answer:
Answer by David Z
with stock no interest or dividend must ever be paid to the shareholder. only if the company makes money might they dividend money to shareholders. shareholders get to vote for Board who hires management. so no dividend may translate to management getting fired some day.
with a bond there is a stated interest rate that must be paid. bond holders typically do not get to vote on shareholder matters.
Bond
PJ Bond @ Fest 11 10.27.12-22
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PJ Bond plays Fest 11 at Civic Media Center, Gainesville, FL, October 27, 2012.
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