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Stocks and bonds are both types of investments, but they have different characteristics. Stocks represent ownership in a company, while bonds represent a loan to a company or government. The relationship between stocks and bonds is often inverse, meaning when stock prices rise, bond prices may fall, and vice versa. Investors often use a mix of stocks and bonds in their portfolios to balance risk and return.

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5mo ago

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Related Questions

Difference between stocks and bonds?

stocks are stocks and bonds are bonds . flatout -ashes


What is one key difference between stocks and bonds?

One key difference between stocks and bonds is that stocks represent ownership in a company, while bonds represent debt owed by a company or government.


Do corporations issue stocks and bonds?

They do in fact issue stocks and bonds.


What investment has the lowest risk and lowest rate of return between savings bonds stocks collectibles or real estate?

stocks


What distinguishes stocks from bonds?

The only difference between the 2 is that a stock represents ownership and a bond is a long term debt. You will be paid via stocks but only receive interest from bonds.


What is more risky stocks or bonds?

Stocks.


what is the difference between sale of bond and stock raising fund in firm point of view and investor?

The main difference between stocks and bonds is that stocks give you partial ownership in a corporation, while bonds are a loan from you to a company or government.


What is the basic difference between a stock and a bond?

1)stocks are in units, whereas bonds are for number of years. 2)stocks are the number of units for the companies whereas bonds can be for short or long term


Which earns interest stocks or bonds?

bonds


What is stock exchange and what is stocks and bonds?

A stock exchange is a place where stocks are traded. Stocks are shares of a company. Bonds are like a loan to a company.


Will long term debt increase when you issue stocks and bonds?

When a company issues bonds, yes. Stocks, no.


What was the long term goal for the federal securities act?

To regulate stocks and bonds.