Stocks and Bonds

References to the terms "stocks" and "bonds" are frequently heard in the mainstream media and throughout the investment literature, but the terms may not be completely understood by the general public. Therefore, making the distinction between the two financial instruments by providing current working definitions and typical examples of stocks and bonds is an important enterprise. To this end, this paper provides a review of the relevant literature to develop respective definitions and examples of the terms "stocks" and "bonds," followed by a summary of the research and significant findings in the conclusion.

In corporation law, the term "stock" is used in a variety of ways. For example, according to Black's Law Dictionary, "It may mean the capital or principal fund of a corporation formed by the contributions of subscribers or the sale of shares; aggregate of a certain number of shares severally owned by the members...
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