When you lend money to a company or government to receive a fixed return for a set period of time. The entity to whom you loan the money promises to repay your original principal plus the interest earned, with security against the loan on an asset (e.g. property) that is owned by the entity.
Lending your money or asset to a company, government or individual for an agreed time.
You receive income (or full payment) at a set rate for the agreed period of time.
The Rate of return is known in advance and loan periods can be extended if agreed upon beforehand.
When you purchase an ownership investment or equity, you own that asset partially or fully. Investments could include stocks, property, commodities, and collectibles like art. The value of the investment will fluctuate depending on the volatility of market conditions, company performance, and both local/global forces.
Purchasing a part or whole share of an asset at the current market rate
The value of the asset will fluctuate depending on market conditions and use of the asset
The rate of return is unknown in advance
