What are the advantages and disadvantages of bond stocks?

Bond stock has similar quality with bond and preferred stock, so in most cases, it has advantages over common stock The two main similarities between the bond shares and the preferred shares are the regular payment or the payment of dividends to the shareholders, and in the case of liquidation of the company, the holders of the bond shares will get compensation from the sale of the company's assets before the ordinary shareholders The main downside of bond stocks is that they are not legally backed by corporate assets or collateral and are treated as equity rather than debt instruments This means that it is only guaranteed in the company's reputation and reputation If the company is liquidated, the creditors are paid off first, then the traditional bondholders, then the bond shares and preferred shares From this point of view, there may be no funds to repay the bondholders, even if they have priority over the majority of common shareholders In the United States, unsecured bonds are similar to bond stocks, and these terms are usually interchangeable Both investments are in the form of a voucher that acknowledges the company's debts, but if it fails, it has no claim on the company's assets Because of this, bond stocks are usually issued by stable large companies, as well as national governments that rely solely on reputation to support financial instruments As far as the government is concerned, if there is a financial crisis, the government can print more money to ensure the liquidity and financial solvency of the holders of bonds or bond stocks This allows companies to borrow money by issuing bonds and shares, without the need for corporate guarantees to support borrowing One of the disadvantages of this stock investment is that they do not provide shareholders with any voting rights of the company, which is often the case with preferred shares Despite this limitation, convertible bonds can be converted into voting common shares by shareholders If the company has liquidation problems, restrictions on unsecured debt instruments such as bond stocks will increase the frustration of investors and their losses will not be paid off On the other hand, issuers don't see things this way Instead, they are seen as a form of corporate long-term debt financing growth The bondholder is the lender of the issuer Like the bank, dividend payment is a kind of interest of the stock itself, as a form of unsecured loan of the company Each country has different definitions of corporate bonds In the US, it is most similar to unsecured bonds, but in the UK it is safe In Asia, corporate bonds can be compared to mortgages.