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Basics of Bonds

Basics of bonds

Bonds and equities (stocks) are both popular investment options, but they have different characteristics.

Similarities include being investment vehicles traded in financial markets, and their relationship between risk and return. Differences include ownership structure, risk profile, potential returns, income generation methods, priority of payment, and maturity. Understanding these similarities and differences can help investors make informed decisions based on their financial goals, risk tolerance, and investment horizon.

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