Stocks and bonds are two common investment options, but they have key differences. Stocks represent ownership in a company, giving investors a share of its profits and losses. They are typically seen as higher risk, but also offer the potential for higher returns. On the other hand, bonds are a form of debt where investors lend money to a company or government in exchange for regular interest payments. Bonds are generally considered lower risk, as they are more likely to be repaid in full. When considering investing in stocks or bonds, it's important to assess your risk tolerance and investment goals. Stocks are better suited for long-term growth, while bonds provide steady income and stability. Diversifying your portfolio with a mix of both can help manage risk and potentially increase overall returns. Understanding the differences between stocks and bonds can help you make informed decisions and build a strong investment strategy.