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- Stocks and bonds are two different types of investments12. The main differences between them are:
- Stocks represent ownership in a company, while bonds represent a loan to a company or government1.
- Stocks must grow in resale value, while bonds pay fixed interest over time1.
- Stocks have higher returns than bonds, but also have much higher levels of risk2.
- How the securities are taxed is another major differentiator between stocks and bonds2.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.The biggest difference between stocks and bonds is that with stocks, you own a small portion of a company, whereas with bonds, you loan a company or government money. Another difference is how they make money: stocks must grow in resale value, while bonds pay fixed interest over time.www.nerdwallet.com/article/investing/stocks-vs-bo…Stocks vs. Bonds: Key Differences
- Returns Historically, stocks have higher returns than bonds. According to the U.S. Securities and Exchange Commission (SEC), the stock market has provided annual returns of about 10% over the long term. ...
www.forbes.com/advisor/investing/stocks-vs-bonds/ - People also ask
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