State, local governments, banks, and companies issue funds for businesses to borrow (which means collecting money from people). If countries issue, we called it government bonds. If companies issue, we called it corporate bonds.
If the company sells us bonds, we give the money to company. Then the company gets money. When the bond expires, we return the bond back to the company and receive the bond price with interest.
1. Unlike stocks, bonds have a repayment deadline . Stocks are our choice whether we hold a day or 10 years, but bonds are fixed.
2. Bonds can also be traded like stocks, and you can earn market margin.
3. Usually, bonds have higher interest rates than bank deposits, and the more risky the company is, the higher the bankruptcy of the company, so the higher the interest rate on corporate bonds