People have written books on the subject and covering this properly would take some studying on your behalf. However a quick overview. Stockholders owns an equity interest in the business and as far as creditor protection is concern they are at the bottom of the barrel. However, stock ownership or equity ownership provides an opportunity for the stock to appreciate in value which is something very difficult to achieve with bonds. Bonds on the other hand means you are a creditor of the company. The company actually owes you money and will typically pay you some rate of interest while the bond is outstanding. If the company doubles or triples in value, bondholders are not sharing in these gains. However, this creditor protection tat a bond holder has could be quite limited as banks, insurance companies and venture capitalists typically take a higher "secured" position when they lend money to a company. If you're considering a stock or bond investment, please, hire a professional to provide you with some guidance before you make any financial decision. Good luck
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