1 Analysis‎ > ‎Economics‎ > ‎05 Capitalism‎ > ‎2 Financial Instruments‎ > ‎


Governments or companies can issue and sell bonds (usually by auction)  which bind them to pay the face value of the bond on a defined maturity date and also possibly interest on certain dates before that. Historically the interest was obtained by surrendering the coupons attached to the bond on the given dates. Hence often the interest on a bond is referred to as the "coupon" on the bond.

Wikipedia - Bonds

Stockholders have an equity stake in the company (i.e., they are owners), whereas bondholders have a creditor stake in the company (i.e., they are lenders).

(c) The information under this section is originally from Wikipedia and is used under the following licence http://creativecommons.org/licenses/by-sa/3.0/