Mutual Funds, Stocks, Bonds, What are they?Differences?
@jayda_j927tijs (2893)
Hong Kong
December 14, 2006 12:11pm CST
I wanna learn about those,can u tell me what are the differences?
1 response
@fluffhead (79)
• United States
14 Dec 06
Stocks represent ownership in a company. A mutual fund has many different companies stocks pooled together into one investment, to make it easier to diversify then buying each stock individually. A bond is like you loaning the company money and getting regular interest payments, along with the face value at the maturity. hopefully this answers your question, let me know if you need more info.
@jayda_j927tijs (2893)
• Hong Kong
14 Dec 06
But what if I buy bonds,then the company loses money,do they still pay me back?
By the way,Thanks for giving me the details,I think I understand a bit.
@fluffhead (79)
• United States
14 Dec 06
If the company loses money, they still have to make the bond payments. There is a risk they will default, and usually that happens if and when they go bankrupt. If that happens, you are among the creditors who get a piece of that liquidation.
@jayda_j927tijs (2893)
• Hong Kong
14 Dec 06
Oh ok,I got it.Then I guess I have to think very seriously about buying.Thanks for your time and help. Best response for ya.
