Stocks and Bonds
Stocks and bonds can range from conservative to ultra aggressive.
When you invest in individual stocks, you become a part owner of the business, with all the ups and downs. You can vote at shareholder meetings and receive profits allocated to owners. You may get very high returns, but you may also lose money.
Bonds, on the other hand, are an agreement to loan money to a company or government in return for regular payments. While stocks fluctuate, bonds are often more stable, though bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.
