Stocks and bonds are two different securities. Stocks are equity securities. This means that when you own stock, you own part of the company. Bonds are debt securities which means when you own bonds, the company is in debt to you and owes you money.

Generally, stocks will make you more money. With a well diversified portfolio in stocks that are stable, you can earn a nice return. With the same amount of risk, you probably couldn't do as well with bonds. You'd have to invest in junk bonds in order to make a lot of money.

There are more ways to earn from bonds than just getting an interest rate. With this taken into account, you could make a little more with them. You could trade them like stocks.

Honestly, I don't think bonds are worth it if you are a young investor. As you get close to retirement, you should concentrate more of your retirement funds on bonds over time. If you are still in your 20s and 30s and you don't plan on retiring until you are in your 60s, you might as well make as much money as you can with stocks now.

Stocks are sold on a stock exchange. There are lots of different stock exchanges all over the world, most notably, the New York Stock Exchange (NYSE) if you are from the U.S. This is where the shares of stock are actually traded.

Each exchange trades different stocks. You won't get a company that is listed in several exchanges. If you want to buy stock from another exchange, you'll need to make sure your broker covers them.

If you want to purchase stocks, you need to get stock broker to buy them for you. You find a broker by setting up a brokerage account. If you get an online brokerage account, it's just a matter of setting up an account and placing your order. You don't have to call anyone or do anything really to make sure your order is being filled.

Some brokerage firms will require you to call your broker when you want to buy or sell. Some of these firms will give you more help when choosing stocks to purchase, but you will pay for it. Online brokerage firms are a very cheap alternative.

But just how do you get ownership of the stock you want? This is the job of the stock broker on the floor of the stock exchange. The floor is simply where in the building of the stock exchange stocks are bought and sold. It's where the brokers physically stand.

The brokers go to whichever station on the exchange is selling the stock they are trying to buy for you or they look for another broker on the floor who can give them a better price. It's just a matter of each broker getting the buy or sell price they want.

It's a pretty complicated process, and the only way you can get in on it is to become a broker. You have to be licensed to be a broker.

Ultimately as an investor, you just need to know that you are getting the lowest prices to buy at and the highest prices to sell at possible, all with a low commission fee. How you get there isn't as big a deal.

If the prices of stock never changed, their would be little reason to purchase them. At this rate, you couldn't buy low and sell high. The only way to make money from stocks would be through dividends, and some companies don't even issue dividends.

The fact that stock prices go up and down is the reason why people buy them. If this never happened, companies would never be able to sell stock and would have trouble raising money for their company.

How do stock prices actually change? It is a matter of supply and demand.

Supply and demand works for all prices, not just stock prices. The price of bananas, cell phones, gas, and shoes alike are all determined by supply and demand.

Let's use an example of shoes to show you how supply and demand works. Let's say Company B which normally makes and sells jackets, has just come out with a new line of shoes, Line Sneak.

They designed Line Sneak for the teenage crowd and spent several months hyping up their new product and advertising to their target market of teenagers.

Line Sneak is expected to hit stores on June 1st of year one. They manufacture 5,000 pairs of shoes in this line. They decide to sell their shoes at a price of $50 a pair because that is the going rate for these kinds of shoes and they expect to get 5,000 buyers.

June 1st rolls along and the shoes start to fly off the shelves. By June 5th, all the shoes have been sold out. They did not expect them to sell this fast and have only planned to make 5,000 more pairs for the second week of June. They can make more pairs for the third week, but they only have a supply of 5,000 for the second week.

In order to make sure they meet demand, they raise the price to $60 a pair. Many of the teenagers who are buying decide that $60 is too much, and in the second week they sell about 4,800 pairs.

In order to accommodate for the high demand, they had to raise the supply. No by the third week, they still had 200 pairs left over from the week before and because they sold so well the first week, they were able to produce 7,500 pairs for the third week.

Now it is the third week and they have 7,700 pairs of Line Sneak shoes available. They keep the price at $60 a pair. Unfortunately, the shoes are still too much for some teens and have also lost their popularity, so in week three, they only sell 3,000 pairs with 4,700 pairs left over.

How do they deal with this? They decide to only make another 5,000 pairs in addition to the 4,700 for a total of 9,700 pairs. If only 3,000 are willing to buy at $60 and they need to get rid of the supply, they need to adjust their price for the fourth week. They bring the price down to $40 a pair and are able to sell the rest of the shoes.

As you can see, the price all depends on supply and demand. With stocks, if the stock is very popular and a lot of people want to buy it, the price will go up, especially if there are only a limited number of people willing to sell. If everyone is trying to sell and no one wants to buy, the price goes down.

This is why when you are looking to buy stock, you want to buy stock in companies that you think will have higher and higher demand in the future.

A stock is a share of ownership. Stocks are issued by corporations. Corporations issue stock in order to raise money for their business.

It is just that simple.

Here is a little bit more detail. Let's say we have company A that sells widgets. They decide they want to sell stock in order to raise money in order to build a new warehouse to store their widget inventory.

They first need to become a public company in order to get their stock listed on stock exchange. Once they are a public company, they will need to work with an investment bank to issue stock.

They decide how much money they want to raise, how many shares of stock they want to issue, and the price of each stock. Let's say they want to raise $3,000,000. If they issue 300,000 shares of stock, they will need to sell each share for $10.

The company sells shares as an Initial Public Offering, or IPO. They will usually list an advertisement in order to notify the public that they are selling stock.

If they sell all the 300,000 shares for $10 each, they will have raised enough money. The price of the share may go up even as the IPOs are sold.

From now on, people can buy and sell these shares on the stock market for varying prices, depending on supply and demand.

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