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what is the difference between stocks and bonds? which one is better investment?
whats their differnce? i have no idea about both.but well, since the banks do not give enough interest these days i thought maybe bonds or stocks are better.so what are they? how do they work? how is interest calculated? which one is less riskier? any advice
3 Answers
- anonimitieLv 71 decade agoFavorite Answer
Stocks, you own the company. Bonds you own the company's debt.
Stocks pay dividends, part of the company's earnings. Bonds pay interest on the loan you gave them.
Boht have advantages and disadvantages. Bonds are sensitive to changes in interest rates and have lots of different options, I.E. Warrants.
Read Investing for Dummies and visit the website I linked in the sources for more details.
Source(s): http://www.fool.com/ - 1 decade ago
Invest in silver or gold. It's true asset and will only go up as long as the economy is unstable...
- bhupinder gLv 41 decade ago
stocks are high risk, bonds are safe, if you are new invest in mutual fund
