Bonds are certificates that represent money loaned to corporations, while stocksare certificates that represent the shares of ownership in a corporation.Corporations borrow money by selling bonds to investors. Bondholders (those whohave loaned money to the corporation by buying its bonds) receive interest ontheir investment and are eventually repaid the full amount of their loan.Corporations also sell stocks or stock certificates, which are shares of theownership in the corporation. Owners of stocks in a corporation have invested inhopes of getting a portion of the corporation's profits through dividends. Theyalso hope to share in the corporation's increased value through higher stockprices.
