Between Stocks and Bonds

In a system and management of a financial activity, we will know the names of stocks and bonds. Stocks and bonds usually found in companies limited cash value traded. It could be an asset for any company in its management.

But, not infrequently there are those who identify stocks and bonds into one. In fact, stocks and bonds is something different. If a bond is defined and interpreted it to say a letter of acknowledgment of debt a company to another party with a certain nominal value, and the period agreed upon by the parties concerned.

So, it can be said that the bond is a debt management as a form of an investment from the company concerned, to make a company work processes. The bonds themselves are divided into several types, including:

1. Debenture bond
Ie, unsecured bonds, but must be passed with the specified conditions and the holder becomes a general creditor, when the company liquidated.

2. Subordinate Debenture Bond
Where the value of a company's assets so low that when a company is liquidated then the interest payments will be high

3. Income Bond
That company is obliged to pay interest on the bonds, only when the company profits only. In that sense when a company does not profit from its activities, then the interest paid can be done when the company's profit.

4. Junk Bond
That is a value that provides high-yield bonds, but also with a high risk, without using any form of collateral, and of course the high interest value.

5. Mortgage Bond
That is a debenture issued, with the guarantee, the assets or property of preusahaan that issued the bonds.

Of the many types of bonds, of course, each company is also entitled to choose which bonds are roughly able to do. Each company must surely have its own grounding strategies if you want to use the bonds.

Meanwhile, the stock is a form of corporate activity which is a bookkeeping value and an accumulation of the value of a company. This is, make the company has a sales value and obtain a financing or investment activities of the company itself.

Different stocks and bonds one of which lies in the form of financing. If the shares without interest, on the contrary in bonds, returns from a given investment, accompanied by flowers. Shares are divided into several different forms, including:

1. Ordinary Shares
That is a proof of ownership of the issuing company. Condition is the value of stocks with dividend growth of a firm is zero, and whether a dividend a company is constant or not dengna stock value.

2. Preferred Stock
Basically similar preferred stock with bonds. But the payment of dividends are not added interest payments over time ka area and maturity that has been determined by the two parties.

Regardless of our corporate activities, both activities stocks and bonds, it depends on the ability of a company in mengeloa assets, investments, to develop the company into the future.