Stocks Vs Bonds

Analysts have said that Bonds or fixed-income assets look like an attractive hedge to stock market volatility, That’s because the return they offer is inversely correlated with interest rates: When interest rates fall, bond yields go up.

Stocks and Bonds represent two different ways for an entity to raise money to fund or expand its operations. In this case — the Federal Government.
Here are some of the differences between Bonds and Stocks.

• Stocks are simply shares of individual companies, meaning the owner shares in the profits and losses of the company, while Bonds represent debt which signifies the agreement to pay interest for the use of the money borrowed by an entity(Government)
• Someone who invests in stocks can benefit if the company performs very well and its value increases over time & vice versa
  Each bond has a certain par value and pays interest to investors
• Bonds are less risky than stocks, however, stocks have historically delivered higher returns than bonds
• Bond values don’t tend to fluctuate as much as stock price
• The price of a stock is determined by its demand and supply. However, Bonds offer a predictable income stream.
  Explore the aspects of these popular investment options and how they can work for you.

To some people, trading stocks is not the same thing as investing money for the long-haul. Trading is definitely fun and a great way to learn about how the stock market works and how companies are valued.

Try your hand at trading with small amounts of money for a start. It’s even better, because Wealth.ng makes trading a snap.

Bottom line, putting your money in stocks and bonds is a better way to grow your wealth over time than using a traditional, low-interest savings account. Invest now on Wealth.ng!