Question:

Differentiate between stocks,bonds and shares?

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When does one tell the right time to buy and/ sell shares ,stocks and/bonds ?

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  1. Where to start...

    http://en.wikipedia.org/wiki/Investing


  2. Stock(or shares) is a certificate of ownership of a piece of a corporation.....For example General Electric has millions and millions of stock shares.  I can buy some of those shares from a broker.  That is called ownership or equity.  I actually own a piece of General Electric.  I can vote my shares at their annual meeting and I share in their earnings when they pay me a stock divident.

    If a corporation wants to raise money(borrow) they issue bonds, frequently pledging assets.  Bonds, therefore are debt.

    The corporation pays me(the bondholder) interest two times a year, every six months until the bond "matures"  A General Electric First Mtg Bond paying 6.635% due 07/01/2010 means that GE will pay me interest until July 1, 2010.  On that date, I will get all my money back from them..the bond"comes due.

    You know, you hear a lot about our National Debt on television these days.....Well the Government "borrows" by issuing bonds and notes....A simple US Savings bond is you(the buyer of the bond) loaning money to the government.

    Investing is an art form and waaaaay to involved to explain here.But now you know the difference between a stock and a bond.

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