Keyword Analysis & Research: stocks and bonds

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Frequently Asked Questions

What is the difference between bonds and stocks?

Bonds and stocks are both securities, but the major difference between the two is that (capital) stockholders have an equity stake in a company (that is, they are owners), whereas bondholders have a creditor stake in the company (that is, they are lenders).

Are stocks better than bonds?

Generally speaking, stocks almost always perform significantly better than bonds over long periods, albeit it with greater risk and deeper drawdowns.


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