People have had a liked affair with stocks and bonds for the longest time. Like the gold rush, the stock market has made people feverish. In the process, it has made millions and ruined many people’s lives. So stocks and bonds have been the #1 and #2 investments respectively. Learning all the stuff about stocks and bonds can be really hard and can take many years.

Here is a graph that is about stocks and bonds and this was in October 1987. This here is a graph were the bonds are going up a little but mostly straight and the stocks are going up and it looks to me that the stocks make the most the most money on the graph.

Growth of a Dollar

This picture here is also were stocks go up but here the bonds are higher on this picture. In 1925 to 1992, stocks gained more value than both long-term government bonds. This is despite such setbacks as October 1987 and other downturns in the stock market. Also in this graph the bonds are making more money so it look to me that they did better before it was 1987.

Bonds- A bond is a promise to repay the principal along with interest on a specified date. Some bonds do not pay interest, but all bonds require a repayment of principal. When an investor buys a bond, he/she becomes a creditor of the issuer. However, the buyer does not gain any kind of ownership rights to the issuer, unlike in the case of equities.

Stocks- stock also provides voting rights, which give shareholders a proportional vote in certain corporate decisions. Only a certain type of company called a corporation has stock; other types of companies such as sole proprietorships and limited partnerships do not issue stock.

Resources

http://stocks.about.com/

http://www.russell.com/us/Education_Center/Learn/Stocks_and_Bonds.asp

http://library.thinkquest.org/3298/doc/stockbond.html

http://www.historicstockmarket.com/

https://www.centaurusfinancial.com/cfi/stocks.htm