What stocks are treated as equity while bonds as debt

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Why stocks are treated as equity, while the bonds as debt?

This is because the bonds provide a guaranteed return on the investment with a higher claim too. On the other hand, shares doesn’t always guarantee return on the investment and so is riskier, but the shares provide comparatively higher returns on the same amount of investment.

This means that you get more money from the same amount of investment from stocks than from bonds, if your investment is in a profitable company, but you also have the risk to loose all of your money if your decision to choose a particular stock proves a mistake. There are mainly two kinds of stocks: common & preferred. Companies can form classes within their stocks at their will.

So, always remember one thing that it is not too difficult to understand the stock tables or stock quotes, if you know what does mean a specific term there.