As a businessman, you would like to get as many investments as possible. You want to put your money on sure profits through different investment and insurance plans. Bonds and stocks are also your investment options. Actually, some businessmen buy stocks from multinational corporations, while others prefer to get security from bonds. But there are business-minded people who are combine these two investment options. They put money on stocks, while yielding to coupons as well.
Stock is a form of ownership to a company. As the company grows, the investment will grow as well. And when it fails, the investor will get nothing in return. However, since companies' goal is to get high profit, then stocks are also in good nest when they are
earning big returns.
On the other hand, bonds is actually similar to debt. When you release the bonds, or coupons, you will wait for the
maturity period to realize your profit. The benefit of bonds is that you will surely get your investment after a period of time. But the flaw is that profit will depend on the capacity of the borrower to create the needed cash flow to payoff the bondholder.
