A bond is less risky, but you have to pay usually less interest, but the payment is fixed. This is usually for more established corporations that have a guaranteed cashflow.
A stock is good if the business is risky and new, so that the future of it is uncertain. It might reward initial investors a lot, or it might lose all their money. So the risk & reward is higher.
For example with STEEM POWER, people could lose a lot of money because it went down so far, but if Steemit outgrows Facebook, then the initial investor will become literal billionaires.
So SP is risky but it can also be very very rewarding.
Yes crowdfunding is better for smaller projects, where the risk is absorbed by the initial investors.
Banks are usually meant for larger businesses that are already established. The business loans have strict terms that small startups find is hard to comply with.
It's called the stock market.
The pros and cons are different for each, but usually you issue a stake if you think the business is more risky, and issue a bond if it's less risky.
For example with STEEM POWER, people could lose a lot of money because it went down so far, but if Steemit outgrows Facebook, then the initial investor will become literal billionaires.
So SP is risky but it can also be very very rewarding.
Yes and I see crowdfunding going exponential as more people loose faith and or trust in banks as well as wall street.
Yes crowdfunding is better for smaller projects, where the risk is absorbed by the initial investors.
Banks are usually meant for larger businesses that are already established. The business loans have strict terms that small startups find is hard to comply with.