What is the difference between a share and a bond?

A share and a bond are two different types of investments. Both provide an investor with a way to make money by investing in a company, but there are a few key differences between them. A share is ownership of a company, and it represents a small part of the total value of the company. When a company issues shares, it sells a certain amount of ownership in itself, typically referred to as stock. By owning a share of a company, investors become part owners, giving them voting rights and the potential to earn a return on their investment. A bond, on the other hand, is a debt instrument. When a company issues a bond, it is essentially borrowing money. Investors buy the bond and become creditors of the company, meaning they are owed a certain amount of money. Unlike shares, bonds typically don’t offer voting rights to the investor. However, bonds typically offer a higher rate of return than shares, although this comes with more risk attached. In summary, a share is ownership of a company, while a bond is debt. Shares offer the potential to earn a return, as well as voting rights, while bonds offer a higher rate of return with more risk, but no voting rights. In Oklahoma, the laws governing both shares and bonds are issued by the Financial Institutions Division of the Oklahoma Department of Consumer Credit.

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