Finance >> Getting Started
STOCKS offer an ownership stake in a company BONDs are akin to loans made to a company (a corporate bond) or other organization (like the U.S. Treasury) BONDs pay interest twice a year. The amount never changes over the life of the BOND. BOND's interest is fixed -> Inflation reduces the value of BOND's payment. BOND balances the risk of STOCK and stablizes the up and down of the market STOCK provides inflation protection. STOCK value often rises faster than inflation
- STOCK is used to refer to a share of a publicly traded company - TICKER/SYMBOL are alphanumeric characters used to identify company stocks - STOCK QUOTE is another term used to refer to STOCK price - 4 different trade types: > Buy > Sell > Short - "Shorting" means selling stocks that you do not own > Cover - "Covering" means buying back the stocks from market and returning back to your broker.