What is the difference between shares and bonds?

Stocks, bonds and shares?

  • How does one buy stocks bonds and shares? Is there a difference between the three? What do i have to go through to sell them when the time is right? And so on

  • Answer:

    How I learned: - Library card - Looked at dozens of free books on investing - Found Investing for Dummies (best book ever)

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This is just a quick starting point, do a lot of research so you understand the asset classes completely before jumping in! How to buy/sell: Create an account at one of the online brokers like TD Ameritrade. From there you can buy and sell stocks and bonds very easily from the website. Alternatively, you can hire a money manager that can place trades for you. Difference between stocks and bonds: Stocks are "slices" of a company that you own. When you buy stocks, you are actually gaining a piece of ownership in that company and its cash flows. Bonds are a portion of debt (loans) that the company pays interest on. When you own bonds, the company pays you interest on them, and promises to redeem them at face value at some point in the future.

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