Finance Library
InvestingBeginner 4 min read

Stocks vs Bonds

Owners vs lenders — the two big roles your money can play.

Stocks: higher long-term return, bigger swings. Bonds: the opposite trade-off.

Stocks

Buying a stock makes you a part-owner of a company. You share in the growth — and the losses. Higher long-term returns, bigger short-term swings.

Bonds

Buying a bond means lending money to a company or government in exchange for fixed interest payments. Steadier, lower returns, smaller swings.

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