Alex learned that buying a stock means purchasing a small slice of ownership, or a "share," in a company. If the company thrives, Alex’s shares could grow in value, and they might even receive a portion of the profits called dividends . However, if the business fails, Alex could lose their entire investment.
Buying a bond is like giving a loan to a government or a corporation. In exchange for this loan, the issuer promises to pay Alex regular interest payments (often called coupons) and eventually return the original amount on a set maturity date . Alex’s Six Steps to Getting Started how to buy into stocks and bonds
Alex quickly discovered that investing is essentially choosing between two roles: becoming a (stocks) or a lender (bonds). Alex learned that buying a stock means purchasing