Bonds vs. stocks | Stocks and bonds | Finance & Capital Markets | Khan Academy
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- Опубліковано 1 лют 2009
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The difference between a bond and a stock. Created by Sal Khan.
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Finance and capital markets on Khan Academy: Many people own stocks, but, unfortunately, most of them don't really understand what they own. This tutorial will keep you from being one of those people (not keep you from owning stock, but keep you from being ignorant about your investments).
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Bonds get paid first since the company is obliged to pay back what it owes while owning stock is not a promise that you will have returns because you are a part owner so you must be prepared to the fact that you may lose your money.
well said
Give this man some Equity
better yet, give him bonds, James Bonds
What happens if assets < liabilities (as opposed to equal), by some, negative equity, call it D. Is D divided amongst shareholders so that a share price can actually be negative and shareholders not only lose their initial investment but have to pay extra to pay off the debt? Or does share price go to zero, and D is subtracted from total debt, before paying back to creditors, so creditors can actually lose money? I'm guessing it's the former?
In fact I think stock price cant be negative, so any negative equity is divided up as a loss the bond-holders rather than a debt to the shareholders.
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I don’t think I’ve ever seen someone explaining it in such a clear and simple way! Thank you!!
Is now a good time to invest in stocks? I know everyone says stocks are cheap, but how long will it take for us to recover?. The fact that others in my field make six figures each piece. Obviously, there are strategies to be used in this market, but these strategies are not available to the average person, so am better off putting my money elsewhere. I am fully aware of the expense of working more to get more money.
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Simple no nonsense approach to economics. Chrystal clear!
These economic terms confused me so long but not anymore . After watching this video I got it all. Thanks for putting these videos. You're the best.
If I had a dollar for every pixel in this video I would have one dollar.
*76,800px/frame x (9m20s x 30fps) = $2,304,000
Congrats, you're rich.
If I had a dollar for every dollar, I would have one dollar.
If I had a dollar, I'd have a dollar
If I'm broke, I'm broke.
@@jfryk and what happens if his celular is too old or if he is a blind yankee?
Sal, you are a savior! You make the world better one video at a time.
Honestly the First 3 mins is all you need to really understand the basics of the stock system
It is an asset for those who "own" the debt (i.e., those to whom the money is owed).
Can you make videos on convertible issues and warrants?
Yeah can you???
great vid khan! I'm using it to study for a finance midterm right now..very clear and straight forward, extremely helpful! :)
Hi Sal, thank you so much for providing an educational platform that makes learning understandable in a simple yet effective way. Kindest Regards, Frank
Awesome! Thank you so much for these videos!
very interesting, thank you
I learn more from your channel than my entire undergrad period. I feel so sad.
Great content! Keep up the good work.
Thank you very much! I really appreciate your videos! They're brilliant and easy to understand. It makes it so much easier for me to revise what I learn in school :D
Informative video. Thanks for sharing.
KAAHHNNN!
May I ask, can we make a video on how to invest?
If you don't know how to invest I can put you through.
GReat, great video. Thanks for sharing the knowledge.
the easy question to ask about this guy is what doesnt he know LOL everything i want to find out...there he is. MVP
Can someone make a video of how to read stocks and explain the terms with it.
I can put you through if you cares
How are you doing now?
Thanks, definitely subscribing
Thank you so much. this helps with my accounting homework!
+ShortCutAnswers I'm in Texas
+ShortCutAnswers A true love story
+ShortCutAnswers "how'd y'all meet?" "UA-cam"
+ShortCutAnswers Who are you?
-_-
finally a good explanation
Thank you for this informative video
Thank you.
Thank you! Love your videos!
OMG way better than my expensive MBA professor! thanks!
a very good explanation!
how do you know so much. do you have a series 7 licence or something?
Invest in bond when interest rate is low and invest in stock when interest rate is high. This will give you better return.
This is a real question from someone knew to the stock market (me). How do I know if the interest rate is high or low? Is there there set standard for this?
this explanation is awesome
Very well explained...thanks
very helpfull! thank u
Great information!
stonks
Excellent... hands down
where exactly? its not a link
I really wants to say thanks for your nolege
Can you please upload a video providing clear concept of Debenture and Bond please???
what is the name for this porgram i mean the black pord plz ?
Khaaaaan you are a blessing!!!
Real blessing
Nice
Bond? JAMES BOND!!
preferred stocks pay assets also.
Bond certificate may be a great gurarantee that your money is safe rather than investing in stock market because not sure it may crash...
Thank You
the creditors are definitely the one that could claim the remaining asset first
Kahn Acadamy is very insightful. The insightfulness is similar to a financial blog I follow updateinfo.blog
you need a wacom tablet, they are great!
General/Secured creditors will get paid first because they have an obligation to pay off the loans they recieved from the creditors. Stockholders will get paid last.
much appreciated
Nice of
would you be willing to do more videos on subject requested?? pls reply soon.
Love the mid 80s graphics
can assets be mortgaged or do they have to be fully paid for, owned?
and a bond an asset to the holder but a liability to the seller, producer?
GOOD
Awesome
podrias traducirlo en español
Thank you
Debt is also catagorized as part of a companies market capitalization.
OMFG u are actually awesome.
when is it best to sell bonds?
very nice video sir
So a bond is like a COMMERCIAL PAPER that is issued for long term instead of short term, and with provisions like coupon rate?
somewhat similar but a bond does not need to be long term
why would anyone dislike this video?
Yahoo Finance 4Head
i think it's going to be the stock that loses money first, as they own part of the company, so in order words what is yours is mine and what i lose you lose, what i gain you gain... but the bond is more of i gave you this money and you will give it back to me
-Liquidation Priority List -
In the event a company goes bankrupt, the hierarchy of claims on the company's assets is:
-Unpaid Wages;
-IRS (Taxes);
-Secured Debt (Bonds & Mortgages);
-Unsecured Liabilities (Debentures) & General Creditors;
-Subordinated Debt;
-Preferred Stockholders; and
-Common Stockholders
Is debt called debentures?
Question:if an investor is funding a business and funds up to $4,500,000 and he gets 150,000 in shares and 15% of the business .I have a total of 1,000,000 shares .does this mean I have to come up with $25,500,000 that equates to 850,000 shares.how does it work does the investor care ,since I'm the founder
Please invest in a Wacom table.
4:08 - 4:38
Bond certificates x4
Certificates 1
Bond certificate x2
sounds like raiman.
Dude, I already know the subject so it was easy for me to follow, but you're gonna need to learn to reign in your thoughts when teaching this. This video is all over the place
@Varun Tripathi doing the CFA level I
very nice video bro
this didn't help me understand how the bond market works.
What made you think a video called "Bonds vs Stocks" will explain the bond market?
i love ittt
"debt is INTRESTing" Khan Academy 2009
your are brilliant instructor
debt will get paid off and if anything's left the senior stock holders
Are senior shareholders the same as preferential share holders ?
@lerox22
After they increase in value, but before they go down in value.
Nice video, thank you.BTW - yes, Bonds get paid first, but then it is all about risk, bonds usually give you low return while if you own a stock, it could give you more than 100% return..or zero..what's your comfort zone?
Ali Bagdam: The Bill birthday days!
What does selling stock mean ?
So there was a statement that was made that the equity is what is left after all debt has been paid, and the shares of the equity is what people buy to own part of the company, my question is what do the owners of the company own then if they sell shares equivalent to the equity. Hopefully my question is clear
I think the order is loans, bonds, preferred stocks, common stocks
are stockholders liable for cancellation of debt when a company is going through bankruptcy
@khanacademy haha nicely told.
Debt must be paid first and if there is any leftover goes to shareholders; however, there different classes of shares.
I study Khan Academy finance as a minor, as we don't have them in England Uni
what's the answer at (9:00)? who is going to lose the money first? stock or bond
7:00
Ahh, we meet again Meester Bond...
What if a country fails then what happens to bond?.. will the person go in loss, can that money recovered?
So, if a company goes bankrupt, the bondholders don't get full payment?
can someone help me with the difference between coupon rate and interest rate?
???
+nidhesh nair they are the same exact thing, just different names.
Interest rate is a general term used to describe how much a borrower pays a percentage of a loan. Coupon rate is specific to bonds, and is a regular payment the company pays to the bond holder.
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Something I don't understand. Say this company is doing really well and making money hand over fist with what ever services it offers. Do the shareholders get that money? or who gets that money? Do the shareholders only benefit from fluctuation in the stock price?
i have just learnd this so i hope to be accurate:
the share holders are the owners of the company.. therefor if the company has more money so do the share holders.. once they want to get some of this money (if the majority of the share holders agrees) the company will give out dividends to the share holders (the owners) .. the dividends will be a higher amount of money if the company has more money..
note that the owners that really decide to give out dividends are the ones with the most shares, they do have to give each share the same amount of course
Osho as Isho: Kiss of deathosho death by removing bill gayspoinreer by k project go sal khan ans pointers of eram and camp khan by George IVth of kirti agarwal. You will understand nice programme.
Bonds is more riskier than stocks because it has an obligation to pay the holders whether a profit has been made or not.or else could be downgraded in the debt Market. With stocks you don"'t need to pay a dividend or a return because it is solely base on the performance of the stock price. There BH will eat the 2 million first and the SH will loose first .. That is BH is more senior when it comes bankruptcy.