Answer:
1. Stock is a security that represents the ownership of a fraction of a co-operation.
2. The amount you make on the stock when you sell it is your "capital gain" for tax purposes. you can calculate your percentage.
3. A bond id loan from an investor to a borrow such as a company government.
4. Two ways to make profit in a bond:-
1. The first is to hold those bonds until their maturity date and collect interest payments on them.
2. The second way to profit from bonds is to sell them at a price that's higher than what you pay intially.
5. There are 6 best investments they are:-
1. High-yield saving accounts.
2. certificates of deposits (cDs).
3. Money market funds.
4. Government bonds.
5. Co-operate bonds.
6.Mutual funds..etc
6. The higher the potential for profit or loss. Using the risk-reward trade of principle, low levels of uncertainty (risk) are associated with low returns and high levels of uncertainty with high returns
Mutual funds
1. Mutual funds is a professionally managed investment fund that pools money from many investors to purchase securities.
2. Mutual funds help investors diversity unsystematic risks by investing in a diversifited part folio of stock across different sector.