What is the difference between bonds and equity?

Question

Accepted Answer

Bonds are debt instruments issued by companies or governments, while equity represents ownership in a company.

Bonds are loans made by investors to companies or governments, who promise to repay the principal amount with interest.
Equity represents ownership in a company and gives shareholders the right to vote on company matters and receive a share of profits.
Bonds have a fixed maturity date, while equity has no maturity date.
Bonds typically have a lower risk and lower return compared to equity.
Examples of bonds include government bonds, corporate bonds, and municipal bonds.
Examples of equity include common stock and preferred stock.

Accepted Answer

Equity referred to owners of the companies and bonds is a debt financing source to raise capital it mainly a fixed amount of interest is given to financer .