The Investment Series: Stocks and Bonds

WHAT ARE STOCKS?

HOW DO YOU MAKE MONEY FROM STOCKS?

So, you’ve bought your stock and now want to know how to cash in your gains — as you should! There are two main ways of doing this: growth and dividends.

BONDS: THE FINANCIAL MARKET’S IOU

Bonds are a fixed income instrument of corporate or governmental debt. It represents a loan paid by an investor to a borrower — an I owe you. The mechanism of bonds are, even at a high level, pretty confusing. But I will try to keep it as straightforward as possible. There are two main categories of bonds, corporate and government. There are also municipal bonds and agency bonds (don’t ask me what these are — I have no idea).

THAT’S ALL FOR NOW FOLKS!

Alas, our short time has come to an end. But I hope this has helped to give you some basic understanding into what might become the start of some profitable future investments. In the next article, I’ll be looking to cover what the financial ‘markets’ actually are. I’d also like to touch on what the bear and bull market terms mean and finally end with equity fund investing (index, mutual and ETFs).

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Economist 💰| Law student ⚖️ | Amateur stock investor 📈