Final answer:
A bond is a form of debt where an investor loans money to a government or company, while a stock represents ownership in a company. The prices of both bonds and stocks can fluctuate based on various factors.
Step-by-step explanation:
A bond is a form of debt where an investor loans money to a government or company for a fixed period of time, usually with regular interest payments. A stock, on the other hand, represents ownership in a company and gives the investor the right to participate in its profits and voting rights.
The prices of bonds and stocks can fluctuate based on various factors, including supply and demand, market conditions, interest rates, company performance, and investor sentiment. While both stocks and bonds can experience price volatility, stocks generally have higher price fluctuations compared to bonds.