Final answer:
Stocks are partial ownership in a company, while bonds are loans to governments and companies with interest payments. Stocks benefit from company growth, while bonds provide steady interest payments.
Step-by-step explanation:
Stocks and bonds are both investment vehicles that allow individuals to earn money by investing in companies and governments, respectively. When you buy stocks, you become a partial owner of the company, and your potential returns come from the company's profits, as well as the increase in the value of the stock. On the other hand, when you buy bonds, you are essentially lending money to the government or a company, and you earn interest on that loan over time.
For example, if you buy shares of stock in a tech company, you can benefit from the company's growth and success, as well as any dividends that the company may pay to its shareholders. On the other hand, if you buy bonds issued by the government, you will receive regular interest payments from the government for the duration of the bond.