They are two of the main building blocks of investing.
Direct answer
A stock represents part ownership in a company, with returns coming from price growth and dividends. A bond is a loan you make to a government or company, which pays interest and returns the original amount at maturity. Stocks generally offer higher potential returns with more volatility. Bonds are usually steadier but not risk-free.
Comparison
| Stocks | Bonds | |
|---|---|---|
| What you get | Ownership | Loan repayment plus interest |
| Typical return source | Price growth, dividends | Interest |
| Typical volatility | Higher | Lower |
| Main risks | Market and company risk | Credit, interest rate and inflation risk |
How they work together
When stocks fall, bonds sometimes hold up better, which can smooth results, though this is not guaranteed.
Where Teyro fits
Teyro's How to Understand Investment Risk course turns this into short lessons you can play in a few minutes a day. It has 50 lessons, and you can start free.
The bottom line
Understand both, then choose a mix that fits you. This is general education, not advice.
This is general education, not personal financial advice.
