Factors such as what markets you invest in, your personal goals and risk tolerance, how you diversify and allocate your assets, and who you use to help you invest your money, all make up this complicated system.
It’s up to you to determine how you are comfortable investing, but don’t be afraid to reach out for guidance to ensure you make good decisions about your money.
A stock is a share of ownership in a company, whereas a bond is a debt instrument with a set interest rate, time frame, payment intervals and principal payment at the end.
Risk and reward are key with stocks and bonds. Stocks are riskier, with the reward greater, as well as the possible loss. Bonds make consistent money and you tend to get some back if the company doesn’t fare well.
Stocks and bonds are risky investments, but it’s important to know their uses.