what is the difference between stocks and bonds 
stocks are issued by companies to raise capital to grow the business or undertake new projects there are important distinctions between whether somebody buys shares directly from the company when it issues them in the primary market or from another shareholder in the secondary market when the corporation issues shares it does so in return for money bonds vary from stocks in several ways bondholders are creditors to the corporation and are entitled to interest as well as repayment of the principal invested also creditors are given legal priority over other stakeholders in the event of a bankruptcy and will be made whole first if a company is forced to sell assets conversely shareholders often receive nothing in the event of bankruptcy implying that stocks are inherently riskier investments than bonds 2