when a corporation needs a very short term capital boost it may sell commercial paper which is similar to a bond but typically matures in 270 days or less 
a balanced portfolio may contain some bonds to offset riskier investments the percentage devoted to bonds may grow as the investor approaches retirement corporate bonds vs stocksan investor who buys a corporate bond is lending money to the company an investor who buys stock is buying an ownership share of the company the value of a stock rises and falls and the investor s stake rises or falls with it the investor may make money by selling the stock when it reaches a higher price by collecting dividends paid by the company or both by investing in bonds an investor is paid in interest rather than profits the original investment can only be at risk if the company collapses one important difference is that even a bankrupt company must pay its bondholders and other creditors first stock owners may be reimbursed for their losses only after all of those debts are paid in full companies may also issue convertible bonds which are able to be turned into shares of the company if certain conditions are met 