Investments in stocks and bonds are more loved by groups of people over the age of 40 because they are considered safer and less volatile like cryptocurrencies. But if our finances are limited then we will be faced with the choice of investing in stocks or bonds.
Let's discuss these two investment instruments both in terms of understanding, advantages, disadvantages and risks, so that we can conclude which one is better.
Shares are proof of capital participation, meaning that we participate in owning a business, according to the capacity or number of shares we have. Some stock advantages such as capital gains and investors will also get dividends or a share of business profits and can submit voting at shareholder meetings.
While stock disadvatages will depend on the company's performance, if the company loses there will be a capital loss because the stock value drops and maybe dividends will not be received or distributed. and if the company is liquidated then the stock investment will most likely be lost.
Bonds are a form of debt acknowledgment issued by a company or government agency and there is a tenor when the maturity date or the bond will be paid. One of the advantages of bonds, investors will get a fixed interest (coupon) that is higher than the bank interest rate. and often if the bonds issued by the government will get a capital gain. If the company goes bankrupt or is liquidated, the bondholders can claim the company's assets in court. Disadvantages obligasa, if we need emergency money, because the bonds have not yet matured, then if investors sell bonds in the secondary market, they will lose, because the price is below the bond value.
After comparing the advantages and disadvantages of these two investment instruments, of course, you can draw conclusions. In your opinion, which is better, stocks or bonds?
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Let's discuss these two investment instruments both in terms of understanding, advantages, disadvantages and risks, so that we can conclude which one is better.
Shares are proof of capital participation, meaning that we participate in owning a business, according to the capacity or number of shares we have. Some stock advantages such as capital gains and investors will also get dividends or a share of business profits and can submit voting at shareholder meetings.
While stock disadvatages will depend on the company's performance, if the company loses there will be a capital loss because the stock value drops and maybe dividends will not be received or distributed. and if the company is liquidated then the stock investment will most likely be lost.
Bonds are a form of debt acknowledgment issued by a company or government agency and there is a tenor when the maturity date or the bond will be paid. One of the advantages of bonds, investors will get a fixed interest (coupon) that is higher than the bank interest rate. and often if the bonds issued by the government will get a capital gain. If the company goes bankrupt or is liquidated, the bondholders can claim the company's assets in court. Disadvantages obligasa, if we need emergency money, because the bonds have not yet matured, then if investors sell bonds in the secondary market, they will lose, because the price is below the bond value.
After comparing the advantages and disadvantages of these two investment instruments, of course, you can draw conclusions. In your opinion, which is better, stocks or bonds?
.