Stocks vs Bonds
There are a few differences in stocks and bonds. The differences could be a function of how much profit you get from investing in them. Read this article about the investment choices available to you.
A bond is very similar to a loan. A company, organization, or government loans you money to invest in and you gain interest from the loan.
A bonds value is directly determined on the value of its interest rate. This rate is determined from the economy and value of the open market. If a bonds interest rate goes up then the bond is worth more for face value. If the bond's interest rate goes down then bond is sold at a lower face value.
Investors like bonds because of the higher interest rates bonds pay out at. You can buy bonds from stockbrokers or OTC markets.
When you buy a stock, you are buying part of the company itself. You become part owner of the company. Stocks come in small, large and mid caps.
Stocks fluctuate in value depending upon how well the company is doing. The better the company does, the higher will its stock prices rise. The reverse is equally true. Stocks can be traded as options too, which is a type of futures business. You can buy and sell stocks every day, on the Internet, in the comfort of your home. Rise and fall in the stock market affects the value of the share you have purchased. So you should realize that stock trading is by far riskier than investing in bonds. - 23199
A bond is very similar to a loan. A company, organization, or government loans you money to invest in and you gain interest from the loan.
A bonds value is directly determined on the value of its interest rate. This rate is determined from the economy and value of the open market. If a bonds interest rate goes up then the bond is worth more for face value. If the bond's interest rate goes down then bond is sold at a lower face value.
Investors like bonds because of the higher interest rates bonds pay out at. You can buy bonds from stockbrokers or OTC markets.
When you buy a stock, you are buying part of the company itself. You become part owner of the company. Stocks come in small, large and mid caps.
Stocks fluctuate in value depending upon how well the company is doing. The better the company does, the higher will its stock prices rise. The reverse is equally true. Stocks can be traded as options too, which is a type of futures business. You can buy and sell stocks every day, on the Internet, in the comfort of your home. Rise and fall in the stock market affects the value of the share you have purchased. So you should realize that stock trading is by far riskier than investing in bonds. - 23199
posted by X - Men @ 12:53 AM
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