Show the difference between bond and loan?
1 Answer
Differences between bond and loan:
| Bond | Loan |
| The notice issued by the company that invests in industries or business to collect necessary amount is called bond. |
The amount received from bank or any other financial institution is called loan. |
| The company that invests a huge amount in certain sector demands money from the public which is not sufficient with it. Interested people can invest in it. Either there is profit and loss in the company. The investors bear it themselves. | The person or group willing to borrow loan have to deposit their property like house, land, etc. The bank provides loan on the basis of the deposited property. The payment should be made in installment along with interest. |
| Share transaction is an example of it. | Loan borrowed from the bank is an example of it. |
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