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What is the difference between a stock and a bond?

When investing money, what is the fundamental financial difference between purchasing corporate stocks versus government or corporate bonds?

M
MoneySmart
asked 1mo ago · 10 rep

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A stock represents partial ownership equity in a company, meaning your return depends on corporate profits. A bond is a debt instrument where you lend money to an entity, and they promise to pay you back with fixed interest over a set time.

W
WealthAdvisor answered 1mo ago

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