Stocks (a.k.a. equities) and bonds (a.k.a. fixed income) represent two different ways to invest in a company, government or other entity.
A share of stock represents a share of ownership in an individual company, whereas a single bond represents a portion of a company’s debt. As an equity owner in a company, an investor participates in the share price movement of the company and may receive a dividend on a regular basis. As a bond investor, an investor receives a periodic interest payment and, at the maturity date of the bond, expects to receive back their principal.