If you’re thinking about whether you should go and buy stocks or bonds, this is the right place to be.
When you buy a stock, you actually become an owner of a certain company (you have an equity stake). If the company is making progress and does positive business, the value of your stocks will probably rise. On the other hand, if the company is having a hard time, the value of your holdings will go down.
Of course, there are many companies out there and you can go and buy a very attractive, well-standing company that will probably do good business in the future. But there is always a risk…

When you invest in bonds, you’re actually lending money to a company or a government. The value doesn’t change… You actually receive a fixed amount of money after a certain period of time. Of course, here lies a risk too – that the amount don’t get paid in full or in time. There are also things to choose here… You can go after government bonds and corporate bonds.

So what’s the difference? Where to invest? Probably the main difference between stocks and bonds is that the value of a stock can rise to an unlimited level. This can happen for various reasons (a company you invested in suddenly becomes very attractive, valuable because of a product it’s launched, for example). On the other hand, the value of a bond can’t rise like that. You usually know what you’re gonna get when the time comes.

Probably your best bet would be to share you investment capital between stock and bonds… it’s just not good to keep all your eggs in one basket.