Stocks and Bonds
Stocks
 Equity
 Shares
 Percentage
 Ownership
 Part of a company
Apple Stock
What can you do with them?
 Collect Dividends or profits
 Vote on certain decisions
 Attend annual shareholder meetings
 Buy and sell
 Asset
 Store money
What is a bond?
 Debt
 Interest rate
 Time period
 Pays Coupons
 Not Equity
 Van be bought and sold
 Government Bonds and Corporate Bonds
USA Bond
Stocks vs Bonds
 Equity in the company
 Company debt
 No time horizon
 Set time horizon
 Variable return
 Predictable return
 May pay a dividend
 Guaranteed Coupon
 No Government stocks
 Government Bonds
 Can be any price
 $100 or $1,000