Bonds Vs. Stocks

What's the difference between stocks and bonds? Sal illustrates this concept through explaining the two ways a company can raise capital: debt or equity. Drawing out a balance sheet, he categorizes stocks as equity and bonds as debt, then explains both securities with a focus on bonds. Learners see how investors make money from bonds and are introduced to concepts such as face value, maturity, and coupons. He ends by introducing the question of bankruptcy and liquidation; what happens to those invested in equity securities versus those invested in debt securities? More on this in the next clip.

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Higher Ed
Social Studies & History
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For Teacher Use
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Instructional Strategy
Flipped Classroom
Closed Captions
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