Bonds are creditor's rights and debt certificates that the government, financial institutions, industrial and commercial enterprises and other institutions want to issue to investors when they directly borrow money from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to agreed conditions. The essence of a bond is a certificate of debt, which has legal effect. There is a bond-debt relationship between bond buyers and issuers, the issuer is the debtor and the investor (or bondholder) is the creditor. As an important means of financing and financial instruments, bonds have the following characteristics:

(1) repayment. Bonds generally have a repayment period, and the issuer must repay the principal and interest according to the agreed conditions.

(2) liquidity. Bonds are generally freely convertible in the circulation market.

(3) Safety. Compared with stocks, bonds usually have a fixed interest rate, which is not directly related to the performance of enterprises, with relatively stable returns and less risk. In addition, when the enterprise goes bankrupt, the bondholder's claim for the remaining property of the enterprise has priority over the stock holder.

(4) profitability. The profitability of bonds is mainly manifested in two aspects: first, investing in bonds can bring interest income to investors regularly or irregularly; Second, investors can use the changes in bond prices to buy and sell bonds to earn the difference.

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Securities refer to the negotiable written documents issued by the issuer to raise funds, indicating that its holders directly or indirectly enjoy the equity or creditor's rights of the issuer, including bonds, stocks, new share warrants, investment fund securities and other various derivative financial instruments. Securities stipulated in the Securities Law refer to stocks, corporate bonds and other securities legally recognized by the State Council. ?

Securities are profitable and risky. The investment purpose of stocks, bonds and fund bonds is to obtain investment income. Investors have the right to receive dividends and bonuses after subscribing for shares; After you subscribe for the bonds, you are entitled to interest on the bonds. However, in order to realize investors' right to gain income, investment must be effective, and investment itself means that it is accompanied by certain risks.

If the issuers of stocks, bonds and fund bonds lose money or even go bankrupt due to poor management, investors' expected income may be lost. Of course, the risks and benefits of stocks, bonds and fund bonds are different. Generally speaking, high-risk investment returns are relatively high, and low-risk investment returns are small. The risks and returns of stocks are generally higher than those of bonds, while the risks and returns of fund bonds are between stocks and bonds. ?

Securities are liquid. Investors in stocks, bonds and fund bonds can freely transfer their securities to others in the securities market, which can enable investors to recover cash for other purposes, and liquidity also plays a role in reducing investment risks. When transferring stocks, bonds and fund bonds, investors may receive cash higher or lower than the face value of the bonds. This is because the market price of securities will fluctuate constantly due to social, economic and psychological factors. When it is lower than the issue price, investors will suffer losses.

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A stock is a written certificate of the ownership of the share capital issued by a joint-stock company to its investors. Stock holders are shareholders of joint-stock companies. Stock expounds the agreed relationship between the company and shareholders, and expounds the responsibilities and rights of risk sharing, income sharing and enterprise management. It is not only a way of financing, but also an existing form of enterprise property rights, which represents asset ownership. The main characteristics of stocks are shown in three aspects: first, they are non-refundable. As a legal equity certificate, stock holders have the right to participate in dividend distribution and exercise shareholders' rights according to regulations, but they can't withdraw their shares halfway to get back their principal, that is, they only pay interest and dividends without returning the principal. Second, with

Very risky. Buying stocks is a kind of venture capital. Investors have the right to obtain profits according to regulations, but they also have to bear risks and be responsible for the company's debts, that is, "risk sharing and income sharing". Third, it is a liquid. As a kind of capital security, stock is a flexible and effective fund-raising tool and valuable securities. Although it cannot be returned halfway, it can be transferred, mortgaged and traded. This liquidity and flexibility are the advantages of the stock and its vitality.