What's the difference between bond and stock investing?

What's the difference between bond and stock investing?

Bond investing involves lending money to an entity for interest, while stock investing means buying ownership in a company.

Which is generally considered safer, bonds or stocks?

Bonds are generally considered safer than stocks because they provide fixed interest payments and return of principal.

What are the potential returns for each type of investment?

Stocks typically offer higher potential returns but come with higher risk, while bonds offer lower returns with more stability.

Can you explain how interest rates affect bond prices?

When interest rates rise, bond prices usually fall, and when rates fall, bond prices typically rise.

What should a beginner consider when choosing between bonds and stocks?

Beginners should consider their risk tolerance, investment goals, and time horizon when choosing between bonds and stocks.