What Is the Difference Between Stocks and Bonds?
Stocks represent ownership in a company; bonds represent a loan to a borrower. Learn how they differ in risk, return and role in a portfolio.
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Stocks represent ownership in a company; bonds represent a loan to a borrower. Learn how they differ in risk, return and role in a portfolio.
Bonds are generally less volatile than stocks, but "safer" depends on context. Government bonds from stable issuers are among the steadiest investments; bonds from shaky borrowers can be very risky. No investment is risk-free.
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