Bonds are fundamentally different from stocks. Bonds are a personal loan that purchasers of bonds are giving to a company, government, or municipality. Bondholders are creditors to the corporation, municipality, or government, and are entitled to interest as well as repayment of principal. Creditors are given legal priority over other stakeholders in the event of a bankruptcy and will be made whole first if a company is forced to sell assets in order to repay them. This inherently makes them significantly safer, and less risky, than stocks. Shareholders are last in line and usually receive nothing, or a few pennies, in the event of bankruptcy.
On the flip side, bondholders are ONLY entitled to receive the return given by the interest rate agreed upon by the bond, while shareholders can get great returns generated by increasing profits, theoretically to infinity.
Bonus point: many municipal and government issued bonds are tax advantaged. For instance, a New York City (NYC) resident owning a NYC school bond will pay not taxes on the interest received from the bond.To be continued. Please stay tuned.