) When it comes to considering the capital of a company, a stock becomes an important component of that capital. A stock is the representation of the way in which there is the holding of ownership in a company (Clarkson, Miller & Cross, 2016). In contrast, when a bond is considered, it is a form of loan instrument (Clarkson, Miller & Cross, 2016). There will always be money borrowed against a loan instrument like a bond but never against a stock. There might not be returning of a stock by a stockholder till a company keeps running. However, there is a fixed period of maturity for a bond. There is dividend which is carried by every stock.