Question

Explain the difference between stocks and bonds discuss return and ownership

Answer 1

Answer:

Stocks represent ownership in a Business (aka Equity).

Bonds represent money lent to a Business (aka Debt).

Unlike with a House, a Business has many owners called Shareholders.

Unlike with a House, a Business borrows from many lenders, called Bondholders.

Stocks and Bonds can be publicly traded, which allows investors to buy and sell daily.