Need a hand?

When you're buying a stock of a company, you're buying part of the ownership of that company. This means you rely on potential dividends or the stock price to move upwards to generate a return, while being exposed to the risk of the stock price dropping.

When you buy a corporate bond, you lend money to the company in exchange for periodic interest (coupon) payments until maturity, when the principal is repaid. Bonds offer more predictable income at lower risk, while stocks offer higher potential returns at higher risk.

For more information on the risks associated with financial instrument transactions, consult our Risk Disclosure.