When you buy a corporate bond, you’re lending money to the company and become a creditor. In return, you receive regular interest payments and the promise of repayment at maturity, making it a relatively low-risk investment, though all investments involve risk. On the other hand, buying company stock means you own a portion of the company, which comes with the potential for capital gains but also greater risk as stock prices can fluctuate significantly. Investors turn to corporate bonds when seeking out predictable income, and stocks for ownership and potential for higher returns, which comes with greater volatility.