How do stocks and bonds differ?

Stocks are good for income while bonds are good for long-term growth.

Stocks may help you protect your money from inflation while bonds may be more susceptible to losing their value over time due to inflation.

Stocks are loans you give out to corporations and get paid back with interest; bonds are shares of a company that you own.

Stocks are low risk while bonds are high risk.

The difference between stock and bond are stock represents ownership and bond represents debt.

Explanation:

The stocks are the best long term investment and they provide good income whereas bonds are good for long - term growth.

Stocks are the shares of individual companies. For example if the owner of the company wishes to expand their organization, it is difficult through their income they earn through their operation. Finally the company has to split the shares and sell it in the open market known as initial public offering.

The bonds represent debts. For example if the government, corporation or other entity that needs money then they will borrow the money from the public market and pay interest on that loans to the investors.

the correct answer is b.)

the answer is a.

by: nicholas dooley