The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “How does a bond differ from a stock?” If you’ve just started investing or even if you've been investing for a little while now, you might hear these terms and think that they're interchangeable, bonds and stocks, stocks and bonds, but the reality is that they are quite different from one another. The only similarity that they actually share is that in many cases, they are structured investments and you can just as easily buy a bond as you can buy a share of stock. But at that point, they start to diverge just a little bit in some of their qualities and I wanted to go through that quickly here on today's podcast. One of the major differences between stocks and bonds is that stock ownership is a second or third level ownership in a company compared to bondholders. What we typically refer to as bondholders is having kind of seniority bond-holding position or a seniority position