Britsbon
Stocks (or equities) represent ownership in a company. When you buy a stock, you're essentially buying a slice of that business. If the company does well, your share gains value — and sometimes pays you a portion of the profits as dividends.
Common Stocks – Voting rights, potential dividends.
Preferred Stocks – No votes, but higher claim on assets and fixed dividends.
Bonds are loans you give to entities (governments, corporations) in exchange for interest over time and the promise of your money back at the end of the term (maturity date).
Government Bonds – Issued by countries (e.g., U.S. Treasury Bonds).
Municipal Bonds – Issued by states or cities.
Corporate Bonds – Issued by companies to raise capital.
Think of stocks as owning, and bonds as lending.
Growth Potential – Stocks historically outperform all other asset classes over the long term.
Dividends – A source of passive income.
Ownership – You own a piece of a company you believe in.
Liquidity – Easily bought/sold via stock exchanges.
Stability – Less volatile than stocks.
Regular Income – Predictable interest payments.
Diversification – Balances risk in a portfolio.
Safety – Especially with government-issued bonds.
Growth Investing – Focus on companies with strong future potential.
Value Investing – Buy undervalued stocks (Warren Buffett style).
Dividend Investing – Focus on income-generating stocks.
Index Investing – Broad exposure via ETFs or mutual funds (e.g., S&P 500).
Laddering – Spread bonds over time to reduce reinvestment risk.
Short vs Long-term Bonds – Adjust based on interest rate outlook.
Mixing with Stocks – Balance for age, goals, and risk tolerance.
High growth potential
Ownership & influence (in some cases)
Liquid and easily accessible
Dividend income
Predictable income
Less risk than stocks
Capital preservation (if held to maturity)
Great for retirement portfolios
Volatility – Market swings can be sharp and stressful.
Emotional Trading – Many lose money by reacting emotionally.
No guaranteed returns – Companies can fail.
Inflation Risk – Fixed payments lose value over time.
Interest Rate Risk – Prices fall when rates rise.
Credit Risk – Issuer may default (esp. in junk bonds).
This is not financial or investment advice.
Investments are subject to market risk, including the loss of principal.
Past performance is not a guarantee of future returns.
Stock and bond investing should align with your financial goals, risk tolerance, and investment horizon.
Taxes apply to dividends, capital gains, and interest — consult a tax advisor.
Diversify across sectors, geographies, and asset types to reduce risk.
Always DYOR or work with a licensed financial advisor.
Start with Index Funds/ETFs – Lower risk, broad exposure.
Don’t Time the Market – Stay consistent.
Understand Before You Invest – Don't buy a stock because it's trending.
Use Dollar-Cost Averaging – Invest a fixed amount regularly.
Reinvest Dividends – Boost compound growth.
Set Goals – Retirement, income, or growth? Your strategy depends on it.
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