So, i’m new to investing.. I know the definitions of them; but i was just wondering what is the benefits or advantages or so for investing in each of these?
Like the earnings or so? If you have any advice on them; please let do tell me. Thanks.
Related Financial Articles
3 Comments For This Post
Leave a Reply
- How exactly do the democrats think spending 335 million dollars for condoms will stimulate the economy?
- When the economy completely crashes will Bush be brought up on charges?
- Will history remember Republicans for not only ruining economy but standing in way of fixing it?
- Why do Democrats want to kill jobs and cripple the economy with their Cap and Trade bill?
- Do you think a massive deportation of illegal immigrants would impact the US economy ?
- When can we start blaming Comrade Obama for the bad economy, or will it always be George Bushs fault?
- Should we start to panic over the economy and recession?
- As the Bush economy collapses, does it make people more likely to vote for more republicans?
- Obama is elected and stock market has the largest 2 day drop in history. Coincidence?
- Why do conservatives only whine about the economy when a democrat is in office?
- meg: It was the bank failures that was caused by the cr...
- Ingrid: I do not believe that it will have the same effect...
- Clayton J: Industrial and Technical Economics preclude market...
- Follow Me!: Not sure. I know that dry-cleaners in central bu...
- kozzm0: Yesterday the market went up as Obama's poll numbe...
- What Kind of Exposure Should an Investor Have?
- Are Penny Stocks Right Business For Me?
- Corporate News: All About The Business
- High Impact Brochure Printing – A Must For Coffee Shops
- Are Things as Bad as They Seem?
- Wedding Invitation Cards: Elegant Matte Costume Made Wedding Invitation Cards
- Online Store: Star Now
- Carton And Graphical Grade Supplier
- Starting a Roth IRA
- Forex Cyclone – The Next Generation of Forex Robots!
April 30th, 2010 at 2:48 pm
http://www. diffen. com/difference/Bond_vs_Stock
http://www. investorguide. com/igu-article-488-mutual-funds-vs-stock-ownership-which-is-best-for-your-investing-style. html
April 30th, 2010 at 3:00 pm
Stocks represent proportional ownership in a company. If you buy one you become entitled to any profits that company generates. You are also responsible for electing the board of directors who oversee the management of the company and for voting on issues the company faces.
Bonds are loans that companies sell to investors to raise money. The corporation pays interest to the owners of the bonds just as you would pay interest to a bank if you borrowed money to buy a car. The advantage is that you usually face lower risk. The disadvantages are that the returns are somewhat limited and it is quite difficult to actually find bonds to buy as an individual. You would be better off buying a bond fund.
Mutual funds are companies that take your money and invest it on your behalf for a fee. Your profit differs depending on whether it is a closed end fund or an open end fund, but essentially, if the fund makes money you make money and if the fund loses money you lose money. The advantage is that they offer professional management and simple diversification. The disadvantage is that there is a fee and the “professional” management is often incompetent. Morningstar rates funds based upon their historical quality.
April 30th, 2010 at 3:56 pm
To put it simply.
A stock is a chunk of a company, the value of the share depends on what the market thinks. Shares can go up or down.
A bond is a chunk of Debt, you aggree to pay for that chunk and after a period you get interest back.
A Mutual Fund is a company that invests money on your behalf into Stocks / Bonds / Other investments, in order to return you a profit.
They are experienced and educated in investing and should be utilised if you are not educated in shares or investing.