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Return To Bonds FAQ Archive   What is the difference between stocks and bonds? Answered By Editor Stocks and bonds are basically so similar yet they have differences. Here is an explanation how they are similar and how they are different from each other: - Stocks - Buying a company's stocks are like buying a partial ownership of the company. For example, if you bought 1 thousand shares of a particular company with 1 million shares, you will have 1% ownership of the company. - Bonds - Bonds are not particularly ownership of a company. If a company issued bonds, it would be like raising money for something, like opening a store. You will become a creditor of the company and the company will pay you back over the life of the bond with interest. Both are potential money maker but as you can see, both are very different kind of investment. It is up to you to determine which suits you best. keywords: Bond | Bonds | Financing | Stocks | Investment Bond Rate Cashing Us Savings Bonds

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