Armed with this knowledge, Alex followed a clear roadmap to make their first purchase: Difference between Stocks and Bonds - TD Bank
Once upon a time, there was a curious person named Alex who decided it was time to make their money work as hard as they did. After years of letting savings sit in a simple bank account, Alex set out on a journey to learn how to buy into the worlds of and bonds . The Tale of Two Roles: Owner vs. Lender how to buy into stocks and bonds
Buying a bond is like giving a loan to a government or a corporation. In exchange for this loan, the issuer promises to pay Alex regular interest payments (often called coupons) and eventually return the original amount on a set maturity date . Alex’s Six Steps to Getting Started Armed with this knowledge, Alex followed a clear
Alex quickly discovered that investing is essentially choosing between two roles: becoming a (stocks) or a lender (bonds). Lender Buying a bond is like giving a
Alex learned that buying a stock means purchasing a small slice of ownership, or a "share," in a company. If the company thrives, Alex’s shares could grow in value, and they might even receive a portion of the profits called dividends . However, if the business fails, Alex could lose their entire investment.