What is the difference between a share and a bond?

Shares and Bonds are two different types of investments in commercial law in Florida. Shares, or stocks, represent fractional ownership in a company. When a company issues shares, it splits the ownership of the company into many small parts. Anyone who buys shares in a company is entitled to a share of the profits the company makes, and if the company does well, then the value of the shares may increase and the shareholders can make a profit when they sell their shares. Bonds, on the other hand, are when a company agrees to borrow money from an investor. The investor will receive a fixed rate of interest on the money they invest, and the company will have to pay back the principal and interest on the due date. The risk to the investor from buying bonds is much lower than when buying shares, because if the company fails they will be able to claim back the money they invested plus any interest they are owed. However, there is no chance to make a profit beyond the fixed interest rate.

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