Bonds vs. stocks | Stocks and bonds | Finance & Capital Markets | Khan Academy

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The difference between a bond and a stock. Created by Sal Khan.
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Finance and capital markets on Khan Academy: Many people own stocks, but, unfortunately, most of them don't really understand what they own. This tutorial will keep you from being one of those people (not keep you from owning stock, but keep you from being ignorant about your investments).
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[@aaronferris8590]

Bonds get paid first since the company is obliged to pay back what it owes while owning stock is not a promise that you will have returns because you are a part owner so you must be prepared to the fact that you may lose your money.

[@hiddencryptogems2021]

well said

[@dave2extreme]

Give this man some Equity

[@RoIIingStoned]

better yet, give him bonds, James Bonds

[@bertazoid]

What happens if assets < liabilities (as opposed to equal), by some, negative equity, call it D. Is D divided amongst shareholders so that a share price can actually be negative and shareholders not only lose their initial investment but have to pay extra to pay off the debt? Or does share price go to zero, and D is subtracted from total debt, before paying back to creditors, so creditors can actually lose money? I'm guessing it's the former?

[@bertazoid]

In fact I think stock price cant be negative, so any negative equity is divided up as a loss the bond-holders rather than a debt to the shareholders.

[@stellamoore720]

Starting early is the best way of getting ahead to build wealth, investing remains a priority. Even in a downtrend, the stock market has plenty of opportunities to earn a decent payout, with the right skills and proper understanding of how the market works.

[@greenquake11931]

Courage taught me: no matter how bad a crisis gets, any sound investment will eventually pay off.

[@stellamoore720]

@@greenquake11931 You are so right. I know because my advisor is able to find so many good plays. My portfolio literally went from $300k to $1.1m last year (not counting withdrawals I made) all really exciting. I guess it’s the experience and better judgement and of course the said courage.

[@raymondbarnes5264]

@@stellamoore720 Hey! Please who is this advisor of yours? I guess success really means total knowledge and I hope he/she can help me get back what I lost. Can I have easy access to reach out?.

[@stellamoore720]

@@raymondbarnes5264My consultant is 'MARTHA ALONSO HARA", she provides the entry and exit points on the securities I focus on. You can look her up online. I follow her trade pattern and haven’t regretted doing so.

[@raymondbarnes5264]

@@stellamoore720Access to good information is what we investors need to progress financially and generally in life. here's a good one and I am grateful. Found her website and it was really impressive.

[@jutrindade88]

I don’t think I’ve ever seen someone explaining it in such a clear and simple way! Thank you!!

[@johnholme783]

Simple no nonsense approach to economics. Chrystal clear!

[@shakraisman9773]

These economic terms confused me so long but not anymore . After watching this video I got it all. Thanks for putting these videos. You're the best.

[@Zac6006]

If I had a dollar for every pixel in this video I would have one dollar.

[@jfryk]

*76,800px/frame x (9m20s x 30fps) = $2,304,000 Congrats, you're rich.

[@matthewmondilla6752]

If I had a dollar for every dollar, I would have one dollar.

[@person-yk7kn]

If I had a dollar, I'd have a dollar

[@simoniversen4052]

If I'm broke, I'm broke.

[@KRYPTOS_K5]

@@jfryk and what happens if his celular is too old or if he is a blind yankee?

[@elvismark5172]

Is now a good time to invest in stocks? I know everyone says stocks are cheap, but how long will it take for us to recover?. The fact that others in my field make six figures each piece. Obviously, there are strategies to be used in this market, but these strategies are not available to the average person, so am better off putting my money elsewhere. I am fully aware of the expense of working more to get more money.

[@alexanderjames3043]

The top experts, however, have access to confidential information and data that is not made available to the broader public. Being knowledgeable enough to use them successfully is quite another. Big returns, not changing stochastics, are the key. Rewards and risks must be balanced. To reach your aim, pick the right size and turn your edge as often as necessary.

[@mattandersen2458]

I believe I could benefit from additional assistance because I am having such difficulty navigating the market. Because the majority of my assets have already been sold, I may require some guidance on where to invest my money.

[@waynestones]

@@mattandersen2458 I'm looking for advice on how to rebuild my portfolio and develop more successful methods in light of the steep drops. How can I find this instructor?

[@mattandersen2458]

@@waynestones I wholeheartedly back financial counsellor Sharon Lee Casey, who holds a US SEC licence. She has been helping me for a long with my portfolio. You may look her up online because she has many reviews.

[@oscarjiron6974]

@@mattandersen2458 Fascinated to know, Her credentials are undoubtedly excellent. Sharon appears to be very knowledgeable. I discovered her online profile and read through her resume, educational background, and qualifications, which were all very impressive. She is a fiduciary, so I scheduled a session with her.

[@rimah694]

Sal, you are a savior! You make the world better one video at a time.

[@khanacademy]

It is an asset for those who "own" the debt (i.e., those to whom the money is owed).

[@deekshithng9932]

Can you make videos on convertible issues and warrants?

[@dinaeguizabal6854]

Yeah can you???

[@deadbydesign3297]

Honestly the First 3 mins is all you need to really understand the basics of the stock system

[@frankagliotti3626]

Hi Sal, thank you so much for providing an educational platform that makes learning understandable in a simple yet effective way. Kindest Regards, Frank

[@LoriArredondo]

Thanks Mate, the sad truth is that no one has a clue, we all react to what happens as it happens and try to analyse it but can’t predict an iota of what is going to unfold in the markets… content creators are like amplifiers, when times are good they affirm it and try to tell you why it’s good and that it’s looking bullish but then all of a sudden the market turns bearish and everyone affirms it again and try to analyse why… it’s so sad that many are so powerless and it's not about guessing the market's next move; it's about playing it smart and steady during trading...managed to grow a nest egg of around 2.3Bitcoin to a decent 19Bitcoin in the space of a few months... I'm especially grateful to Whitney Eston, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

[@AntonioMaurer503]

I appreciate the professionalism and dedication of the team behind Whitney's trade signal service.

[@MarkPerl]

I heard her strategies are really good, How do I reach your Coach/mentor.

[@LoriArredondo]

She's mostly interacts on Telegrams, using the user-name...

[@LoriArredondo]

@WhitneyEston

[@blamemando428]

The key to financial stability is having the right investment suggestions for a diverse portfolio. Many investment failures and losses happen when you invest without proper guidance.

[@event2015]

very interesting, thank you

[@Karin6509]

Awesome! Thank you so much for these videos!

[@rogerledasoul]

great vid khan! I'm using it to study for a finance midterm right now..very clear and straight forward, extremely helpful! :)

[@michaelshustek1667]

Informative video. Thanks for sharing.

[@asutn]

I learn more from your channel than my entire undergrad period. I feel so sad.

[@kadharyoussouf8248]

the easy question to ask about this guy is what doesnt he know LOL everything i want to find out...there he is. MVP

[@Photoshop-Phreak]

Thank you very much! I really appreciate your videos! They're brilliant and easy to understand. It makes it so much easier for me to revise what I learn in school :D

[@felixsavvy13]

GReat, great video. Thanks for sharing the knowledge.

[@I___s3v3n3o___I]

Thanks, definitely subscribing

[@CanninInvestment]

Great content! Keep up the good work.

[@shakeyshik]

a very good explanation!

[@StreetArtist360]

Thank you.

[@annietaylor2409]

finally a good explanation

[@r_m5545]

Thank you for this informative video

[@nhowe1]

Thank you! Love your videos!

[@a.rahman1728]

Can you please upload a video providing clear concept of Debenture and Bond please???

[@echeroll]

Very well explained...thanks

[@xenium-uu8fh]

how do you know so much. do you have a series 7 licence or something?

[@111ImNumber1]

Excellent... hands down

[@patelvidhu4840]

Invest in bond when interest rate is low and invest in stock when interest rate is high. This will give you better return.

[@taintfungus]

This is a real question from someone knew to the stock market (me). How do I know if the interest rate is high or low? Is there there set standard for this?

[@belaynm2]

very helpfull! thank u

[@khaledalbeshi5074]

what is the name for this porgram i mean the black pord plz ?

[@ChecksSuperstore]

Great information!

[@davidv4840]

this explanation is awesome

[@kobyking6009]

KAAHHNNN!

[@MA-rc2eo]

May I ask, can we make a video on how to invest?

[@reborngart4531]

If you don't know how to invest I can put you through.

[@mooman966]

where exactly? its not a link

[@reborngart4531]

I really wants to say thanks for your nolege

[@violetamartinez8515]

Thank You

[@zufrieden23]

OMG way better than my expensive MBA professor! thanks!

[@sksnkton]

can assets be mortgaged or do they have to be fully paid for, owned? and a bond an asset to the holder but a liability to the seller, producer?

[@josefkaiser4427]

Can someone make a video of how to read stocks and explain the terms with it.

[@reborngart4531]

I can put you through if you cares

[@H2Ojellyfish]

How are you doing now?

[@abdulrahmanradwan6167]

Nice

[@secr8t850]

Khaaaaan you are a blessing!!!

[@reborngart4531]

Real blessing

[@mrzack888]

preferred stocks pay assets also.

[@jett-jack]

Kahn Acadamy is very insightful. The insightfulness is similar to a financial blog I follow updateinfo.blog

[@westcoastsunsation]

Love the mid 80s graphics

[@moma5232]

Thank you

[@belaynm2]

would you be willing to do more videos on subject requested?? pls reply soon.

[@itsachihuahua1157]

stonks

[@AnuragRaiMusic]

very nice video sir

[@devbodaghe]

General/Secured creditors will get paid first because they have an obligation to pay off the loans they recieved from the creditors. Stockholders will get paid last.

[@karenmontalvo06]

Thank you so much. this helps with my accounting homework!

[@karenmontalvo06]

+ShortCutAnswers I'm in Texas

[@karenmontalvo06]

+ShortCutAnswers A true love story

[@karenmontalvo06]

+ShortCutAnswers "how'd y'all meet?" "KZbin"

[@karenmontalvo06]

+ShortCutAnswers Who are you?

[@karenmontalvo06]

-_-

[@534sfd]

Debt is also catagorized as part of a companies market capitalization.

[@gharelunushke4644]

Bond certificate may be a great gurarantee that your money is safe rather than investing in stock market because not sure it may crash...

[@megaxsagitario]

podrias traducirlo en español

[@ree2177]

much appreciated

[@reborngart4531]

Nice of

[@marvinchristian2517]

the creditors are definitely the one that could claim the remaining asset first

[@echtalion]

Please invest in a Wacom table.

[@BeeJayVC84]

OMFG u are actually awesome.

[@billyegan519]

very nice video bro

[@ChrisCDXX]

you need a wacom tablet, they are great!

[@sameeshoncloud9]

Awesome

[@PizdaTiMaterina]

Bond? JAMES BOND!!

[@nazeerali9184]

your are brilliant instructor

[@lerox22]

when is it best to sell bonds?

[@linguisticallycultured4535]

I think the order is loans, bonds, preferred stocks, common stocks

[@kwamedezo7036]

So there was a statement that was made that the equity is what is left after all debt has been paid, and the shares of the equity is what people buy to own part of the company, my question is what do the owners of the company own then if they sell shares equivalent to the equity. Hopefully my question is clear

[@danielramos6532]

are stockholders liable for cancellation of debt when a company is going through bankruptcy

[@orang3eph]

why would anyone dislike this video?

[@mumuahmed3989]

i love ittt

[@kurbonshodavoronov1679]

What does selling stock mean ?

[@educo-mr]

GOOD

[@zerkon2]

Yahoo Finance 4Head

[@tastytastfood]

I study Khan Academy finance as a minor, as we don't have them in England Uni

[@ghostbuddy]

@lerox22 After they increase in value, but before they go down in value.

[@radeshnarine]

Question:if an investor is funding a business and funds up to $4,500,000 and he gets 150,000 in shares and 15% of the business .I have a total of 1,000,000 shares .does this mean I have to come up with $25,500,000 that equates to 850,000 shares.how does it work does the investor care ,since I'm the founder

[@TosinDFreshPrince]

i think it's going to be the stock that loses money first, as they own part of the company, so in order words what is yours is mine and what i lose you lose, what i gain you gain... but the bond is more of i gave you this money and you will give it back to me

[@MA-rc2eo]

Debt must be paid first and if there is any leftover goes to shareholders; however, there different classes of shares.

[@abhishekravindra4008]

debt will get paid off and if anything's left the senior stock holders

[@pkTeddyDrolly]

Are senior shareholders the same as preferential share holders ?

[@limzisoon]

what's the answer at (9:00)? who is going to lose the money first? stock or bond

[@dipankarrahuldey6249]

So a bond is like a COMMERCIAL PAPER that is issued for long term instead of short term, and with provisions like coupon rate?

[@rdjnapoli]

somewhat similar but a bond does not need to be long term

[@barryallen9939]

-Liquidation Priority List - In the event a company goes bankrupt, the hierarchy of claims on the company's assets is: -Unpaid Wages; -IRS (Taxes); -Secured Debt (Bonds & Mortgages); -Unsecured Liabilities (Debentures) & General Creditors; -Subordinated Debt; -Preferred Stockholders; and -Common Stockholders

[@pkTeddyDrolly]

Is debt called debentures?

[@MTran0708]

7:00

[@mac1bc]

this didn't help me understand how the bond market works.

[@LDacic]

What made you think a video called "Bonds vs Stocks" will explain the bond market?

[@brown_town_]

4:08 - 4:38 Bond certificates x4 Certificates 1 Bond certificate x2 sounds like raiman.

[@amanmeena2878]

So, if a company goes bankrupt, the bondholders don't get full payment?

[@samaysoni4015]

Dude, I already know the subject so it was easy for me to follow, but you're gonna need to learn to reign in your thoughts when teaching this. This video is all over the place

[@samaysoni4015]

@Varun Tripathi doing the CFA level I

[@tuckervskele8024]

Ali Bagdam: The Bill birthday days!

[@NickMaverick4]

What if a country fails then what happens to bond?.. will the person go in loss, can that money recovered?

[@BeeJayVC84]

@khanacademy haha nicely told.

[@dougwoodward9666]

Ahh, we meet again Meester Bond...

[@treetreebangbang6160]

"debt is INTRESTing" Khan Academy 2009

[@claudia-vp1kd]

Nice video, thank you.BTW - yes, Bonds get paid first, but then it is all about risk, bonds usually give you low return while if you own a stock, it could give you more than 100% return..or zero..what's your comfort zone?

[@nidz122]

can someone help me with the difference between coupon rate and interest rate?

[@nidz122]

???

[@jakefromstatefarm4771]

+nidhesh nair they are the same exact thing, just different names.

[@karvinfernando3782]

Interest rate is a general term used to describe how much a borrower pays a percentage of a loan. Coupon rate is specific to bonds, and is a regular payment the company pays to the bond holder.

[@heinrichvanrooi175]

Bonds is more riskier than stocks because it has an obligation to pay the holders whether a profit has been made or not.or else could be downgraded in the debt Market. With stocks you don"'t need to pay a dividend or a return because it is solely base on the performance of the stock price. There BH will eat the 2 million first and the SH will loose first .. That is BH is more senior when it comes bankruptcy.

[@tuckervskele8024]

Osho as Isho: Kiss of deathosho death by removing bill gayspoinreer by k project go sal khan ans pointers of eram and camp khan by George IVth of kirti agarwal. You will understand nice programme.

[@vanshmadhok5396]

why am i watching this after 12 years