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What is the difference between a Stock and a Bond?
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The main difference between a Stock and a Bond is that stocks represent an ownership interest in a company, giving investors a share of the company’s profits and voting rights in certain corporate decisions, while Bonds are a type of loan that companies and governments issue to raise money. Stocks are known to be more risky because their prices can fluctuate due to changes in the market, while Bonds are considered to be less risky investments that generate a fixed return.