How Do They Compare?
If you pick the wrong stock you could lose everything you have in a matter of minutes.
Requires time and effort to really find the right/ good stocks to invest in and this is time consuming.
Some to most bonds require larger amounts of investments.
Most bonds are a lot less liquid compared to stocks. Unless you are buying into a big company.
Bond prices can fluctate but they are generally more stable compared to stocks.
Risky because of how much they can fluctuate in a matter of seconds.
Stocks have the highest return rate over long periods of time.
Bond holders are paid first over shareholders making it less risky.
Investment returns are fixed when the bond matures.
Returns are fixed, sometimes you will lose out on more money you could have earned.
Stock companies usually distribute a portion of it's earnings to it's stockholders.
You can invest in many different types of stock at one time.
Can be very expensive to manage because investors charge commission and annual fees.
Share prices are only calculated once per day.
A very easy way for investors to buy investments.
Span across various industries, very diversified.
You can invest small or large amounts of money.
Must distribute capital gains to their shareholders.