How do i make money from stocks & bonds?

Question

I don't really understand them! Could someone possibly break it down for me and tell me the difference, and how to go about using them and reading them?

Or, if you could point me in the right direction, that'd be great!

I'll owe ya one!

Thanks.

Answer 1

When you buy stocks, you own a small piece of that company or that business.

When you buy bonds, you're buying an I.O.U. That means you are just lending money to a company, like a bank, but with certain terms and conditions.

How stocks work? Back in 2003, apple was only about $3 a share. Today, it's at $158. If you bought 100 shares back then, right now you would have made $15800 plus dividends.

Most people would tell you that stocks are risky, especially right now, with the market going down. That's why I advise you to study and invest in stock options. You could make money with options when the market goes up, down, or even during a market crash. A great book to read about options is Understanding Options by Michael Sincere.