When the stocks of these corporations are owned by the public at large they are said to be publicly held. Stock brokerage firms usually serve as intermediaries in these transactions, buying the new securities at wholesale prices from the issuer and then reselling them to the investing public at premium prices. The stock market also includes thousands of different mutual funds and thousands of different options to purchase stocks. More About Bonds Investors generally purchase bonds for their relatively safe, stable income. The bond market is even bigger than the stock market.
Most investment portfolios contain both stocks and bonds.
Finding the right mix of these investment instruments, for various investment purposes and degrees of risk, is known as asset allocation. The bondholder usually receives interest payments rather than dividends, does not have the right to vote, and is promised that, at maturity, the loan value will be repaid. Because a bond is a fixed-income, senior security, its interest payments must be in full before shareholders in that same company can receive any dividends. Dividends Many common stocks and all preferred stocks pay dividends. Most dividend-paying stocks make their distributions on a quarterly basis, more of a tradition in the industry than a legal requirement.