Issuer borrows money from Investor, and issues Bond.
The Investor lends money to Issuer and acquires a claim
Issuer issues shares to investor.
Investor lends money to Issuer and becomes an Owner
A common stock represents an ownership interest in the company. It provides owners with voting and cash flow rights in proportion to their size of their ownership stake.
A preferred stock is another type of stock issued by companies to investors. The owners get dividend from the company before any is given to common stock holders. They don't have voting rights
Typical Risk & Return of Equity & Debt Securities.
|Index||Annual Return||Standard Deviation (Risk)|
|World Government Bond||7.88%||7.04%|