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Sunday, May 31, 2009

Stocks vs Bonds

By Gilbert Stockton

There are a few differences in stocks and bonds. The differences could be a function of how much profit you get from investing in them. Read this article about the investment choices available to you.

You must have a picture of a loan. Bonds are very similar. Investing in bonds means that you are loaning your money to a company, organization, or government of your choice. You get a receipt for your loan from the concerned body, and you get the interest on your loan in the form of a bond.

Bonds fluctuate in value based upon the economy of the open market. If the value goes up then you can sell the bond at higher face value. If the market rate decreases then the bond will be sold at lower face value. The interest rates are what determine if the bond is a good investment.

Many investors choose to invest in bonds because of the stable and consistent interest rate they appreciate at. You can buy them at OTC markets or from brokers.

Stocks are an investment in a company. You essential are a part owner of the company when you purchase a stock share.

Stock prices fluctuate because of many factors mainly based upon on well the company is doing. If the company is making money and doing well then a stock's value could increase. You can buy stocks on the internet or through a broker. One thing to note is that stocks are riskier than bonds. - 23222

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