what is the difference between stocks and bonds? which one is better investment?

Go to your library or bookstore and get a book called

Investing for Dummies or The Idiot's Guide to Investing.

These books are very good.

They explain everything clearly.

Please get that book before you start investing.

One note: Stay away from bond mutula funds...

The question you need to answer is WHY you are investing. Different people have different goals. Is it for more income? For retirement? For someone's education? Plus how old are you and how long do you want to invest? How much risk are you willing to assume?

These are all very critical questions and they will determine what kind of investments are right for you. Don't believe anyone who has a "one size fits all" kind of investment. For stocks typically you are talking about at least a 5 year investment period. If less, consider getting into bonds or a bond fund instead. And actually a bond fund is an excellent choice -- there are both more conservative as well as more aggressive funds to suit your purposes. CDs are in contrast a terrible way to save money. With inflation you are losing money on what you put in.

If you want to get into the market but don't know what stock to pick, I would choose an index fund. Instead of throwing all your eggs into one basket (one company), index funds can expose you to dozens, hundreds, or thousands of companies all at once and so there is less risk. This protects you if any one company or industry runs into trouble. For bonds, the returns are less, but more solid.

If you are thinking of retirement, consider a Roth IRA. Your money grows tax free, and when you retire you can withdraw it tax free as well.

For more information, try looking at

https://personal.vanguard.com/us/funds/vanguard/al...

and play with it, showing funds with more or less risk.

Do some reading online such as

http://www.vanguard.com/us/insights

and books like Investing for Dummies for a good intro.

its very difficult to figure out in which country you are located. If you are in India or speaking from India perspective only then my answers apply.

If you buy stocks it means you are a share holder partner in the company. If you buy bonds it means you are a lender and the company has borrowed money from you. Bonds are less riskier but there is a lock in period. you cant trade bonds day in and day out like stocks.

Both are good in their own way, you should diversify and subscribe both, or rather in a broader set of investment instruments.

Interest is applicable to bonds not to stocks there is no interest on stocks, on stocks you may get dividends and price appreciation/depreciation.

for intraday trading tips you could visit my group.

http://finance.groups.yahoo.com/group/Intraday_Sto...

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