Stocks basically represents your shares of ownership in a company or corporation. Thus, if you buy stocks, you are entitled to be a shareholder or stakeholder of that corporation. On the other hand, stock market is simply the place where you buy and sell shares of stock of a publicly listed company. Stock market is definitely very risky and volatile. Here, you will be dealing with two kinds of risks. The first one are risks that are very common in the market while the second risk is due to ignorance.
To achieve your financial goals, you have to quit and sacrifice some things that you do not even need in life like social media. They’re just a waste of time. To guide you on your financial success, I have listed the most powerful and life changing financial advice from different successful people in the world. Click on this post to continue learning the best financial advices from successful people in the world.
Bonds are simply loans. When you invest in a bond, you lend your money to a government, corporation, or organization. A bond is issued with a specific face amount or popularly known as principal. When you invest in a bond, it will pay you a certain rate of interest rate ranging from 5% to 30% annually depending on the type of bond. Usually, interest rates are paid to investors once or twice a year.