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39 votes
Define and Compare Stocks and Bonds.

User Siddiqui
by
2.1k points

1 Answer

12 votes
12 votes

Answer:

easy

Step-by-step explanation:

Stocks are something that you invest in like a company, and you would buy shares of it. if you own enough shares of a company, than you have say in what happens within the business.

bonds are government promises to pay you back an amount with interest after a certain date. I believe the higher denomination you go, the more you earn, and the longer you set it for, the more you earn.

that is essentially the difference, one is with the government which you can really only gain money on, which isnt a lot i should add. or you can invest into companies, and either lose, or gain money. if you want a non risky way to "invest" your money, bonds are a great option. if you want to be more risky, but also have the potential to gain a lot in a short time period, stocks are the one to go with.

User Josh Hemann
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2.6k points