Stock Basics

• Stock markets or exchanges are venues where buyers and sellers of company stock can trade. Stock is issued by corporations to obtain capital and it is purchased by institutional and individual investors who hope to make money through an increase in share price or through dividend income.
  
  

Bond Basics

• A bond issuer uses bonds as a way to obtain investor-funded financing through an underwriting process. Banks and conglomerates often buy bonds as an investment. Individuals can buy them as well. The U.S. Treasury is one of the safest and largest entities to buy bonds from.
  
  

Investment Goals

• Investors with higher growth aspirations who prefer more liquidity might prefer stocks. Stocks are owned by the investor and can generally be resold anytime in the market. Bonds are issued with maturity dates and do not deliver on face value of the investment until that point. Bonds are considered a safer investment for uncertain economic times.