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Which is more profitable Stocks or Bonds?
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[QUOTE="Jasz, post: 274651, member: 61772"] We could say that stocks are more profitable than bonds. A bond is a debt security issued by a company (or government). The issuer promises to make periodic interest and principal payments over time. The investor may also have the option to redeem the bond before it matures, in which case they get back their original investment plus any interest accrued since purchase. A stock is a share of ownership in a corporation. Stocks represent ownership of a company and its earnings. A stock's price reflects its value relative to other comparable companies' stocks. Since stocks are more volatile than bonds, they can offer greater potential profits, but they also carry greater risks as well. However, bonds pay interest whereas stocks do not. In a low interest rate environment, bonds can be a better investment than stocks if your money is tied up in the bond for many years (or decades). But if you have the ability to choose between stocks and bonds, I would go with stocks unless you plan on holding them for a long time. [/QUOTE]
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Which is more profitable Stocks or Bonds?
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