Stock is a certificate issued by a joint-stock company to prove the shares held by shareholders, and it is the manifestation of the company's shares. Investors become shareholders of the issuing company by purchasing shares, and enjoy the rights of asset income, participation in major decisions and selection of managers according to law.
Bonds refer to securities issued in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time, which are characterized by fixed income and less risk.
Compared with stocks and bonds, securities investment funds have the following differences:
(1) Investors have different status. Shareholders are shareholders of the company and have the right to participate in major decisions of the company; The bondholder is the creditor of the bond issuer and has the right to recover the due principal and interest; The fund share holder is the beneficiary of the fund, reflecting the trust relationship with the fund manager and custodian.
(2) The degree of risk is different. Generally speaking, the risk of stocks is greater than that of funds. For small and medium-sized investors, due to the limitation of total disposable assets, they can only directly invest in a few stocks. When the stock they invest in falls due to the stock market or the financial situation of the enterprise deteriorates, their capital may be wiped out; The basic principles of the fund are portfolio investment, risk diversification, and investment in different types of securities with different maturities in different proportions to minimize risks; Under normal circumstances, the principal of the bond is guaranteed, the income is relatively fixed, and the risk is smaller than that of the fund.
(3) The income situation is different. The returns of funds and stocks are uncertain, while the returns of bonds are certain.
(4) Different investment methods. Unlike investors in stocks and bonds, securities investment funds are indirect securities investment methods. Fund investors are no longer directly involved in securities trading, but fund managers are specifically responsible for the determination of investment direction and the selection of investment objects.
(5) Different price orientations. In the same macro-political and economic environment, the price of capital hunger mainly depends on the net asset value, while the main factor affecting the bond price is the interest rate, while the stock price is affected by the relationship between supply and demand and the company's fundamentals (operation, financial situation, etc.). )