*Example:**
If you buy 1 share of Apple, you own a small fraction of Apple Inc.

**Why invest in stocks?**

* They can grow in value over time (capital gains).
* Some pay **dividends** (regular payments to shareholders).
* Higher potential return, but more **risk**.
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### 💵 **What are Bonds?**

* **Definition:** A **bond** is a **loan** you give to a company or government.
* They promise to **pay you back with interest** after a certain time.

**Example:**
You buy a \$1,000 bond from the government. They agree to pay you 3% interest per year for 10 years, then return the \$1,000.

**Why invest in bonds?**
 More **stable** and **predictable** than stocks.
* Lower risk, but also lower return.

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### 📈 Key Differences

| Feature | Stocks | Bonds |
| ----------------- | ------------------------------- | ------------------------- |
| Ownership | Yes – you own part of a company | No – you're lending money |
| Risk | Higher | Lower |
| Return | Potentially high | Predictable, lower |
| Income | Dividends (maybe) | Interest payments |
| Price Fluctuation | High | Usually lower |

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### 🧠 Simple Analogy:
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### 🧠 Simple Analogy:

* **Stock = You’re a business partner.**
* **Bond = You’re a lender.**