<h1>Stocks vs. Bonds: Lessons on Investing During a Recession</h1>
Hey Dad, did you see this stock that is on sale because of the recession?
Did you look at that company’s corporate bonds?
No, I said stock.
No, and I told you to look at that company's bonds.
Why would I do that?
Because it looks like those corporate bonds are trading at a 90% discount, which means nobody's really expecting that they're going to pay back their debt.
I don’t care; I want to buy the stock.
Well, guess what? Bondholders have preference over you, the common shareholder, in the event of a bankruptcy or liquidation. Bondholders might get some of their money back. You would get nothing.
You're learning, son.