Coupon Comparison

August 13, 2008 4:28 am admin Miscellaneous

Coupons are generally associated to bond and dividends are associated to stocks. You don’t hear much about coupon bonds very often anymore, but they are still available. You actually have to redeem those coupons to earn your interest money, unlike shoebuy coupons, you would’nt earn interest in order to redeem them, a task that has almost entirely disappeared from the investment world. Dividend is the portion of the company’s profit that is distributed to the shareholders. This is usually declared as percentage of the face value of the share and is in effect the income of the shareholder earns on his investment.