Stocks, also known as equity, are a form of of ownership in a company. If you decide to invest in a stock it is buying a piece of the company and become an investor. The value of your investment could rise or fall depending how the company.
Bonds, on the other hand 投資ブログ
, are a form of debt investment. If you decide to invest in a bond, you are loaning money to a corporation or government agency in exchange for a fixed rate of interest and the repayment of principal funds at maturity. The value of bonds may also change in accordance with the creditworthiness the issuer and on the interest rate environment.
When it involves investing, it's important for you to broaden your portfolio by including both stocks and bonds. Stocks are a good investment option, as they can yield greater returns, however they also come with higher risk. Bonds are, on the other hand are generally thought more secure, but have lower potential returns. With diversification, your portfolio will be able to reduce risk and maximize the potential return.
In the end, investing in bonds and stocks is an excellent method to maximize your returns. It's important to understand the basics of each kind of investment and increase the diversification of your portfolio incorporating both bonds and stocks. This will help you to reduce risks and improve your odds of being successful. It is important to do your own research, and talk with a financial professional prior to making any investment decision.
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