Bonds (12)

How do bonds rate with shares?

Investing in bonds has the following advantages and disadvantages when compared to investing in shares:

Disadvantages Investing in bonds

a) Investor does not get paid more

As the income (coupons) derived from bonds is stipulated, the investor does not get paid more even if business is booming as in the case of ordinary shareholders who may be given higher dividends.


b) No voting rights and not owners of the company

Bondholders have no voting rights and are not owners of the company while shareholders have a right to vote at general meetings as owners of the company in accordance to the number of shares they hold.