Bonds and shares – what is the difference?

We have summarized the most important facts for you ❗

The differences:

In the case of a bond, you receive interest from the company on the debt capital you have provided. The success of the company is less relevant for the subscriber, which is why a bond is usually less risky than a share. However, they cannot profit from a particularly positive company development. A share is an interest in a company. When you buy a share, you participate in the equity of the corporation and become a co-owner of the company.

Through dividend payments you can participate in the growth and success of the company. In addition, you can profit from the increase in value of the company when you sell the share. However, shares carry a higher risk, since the success of the company directly affects the return on the shares.

The similarities:

Stocks and bonds are securities that are both managed through each investor’s securities account. This way you keep track of the securities subscribed via crowdinvesting.

Since securities are tradable, they are very flexible. In the case of listed securities, trading and thus also selling via the stock exchange at the respective price is possible at any time. If the subscribed security is not listed on the stock exchange, it can be managed in our wallet.

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