RHYS MARTELL  |  financial advisor

What Are Stocks & Bonds?

It's really interesting to me, how many people have an investment portfolio but don't understand the difference between a stock and a bond. Because those are actually two fundamental pieces of most people's portfolios. They usually have both of those things in there in one shape or another.

Let me break it down simply for you:

A STOCK is a just a way to own a piece of a business - or a "share." It's equity in a business.

A BOND on the other hand is a way for you to lend money to a government or to a corporation.

So STOCK = OWNERSHIP and BOND = "LOANERSHIP" (That's not a word, I just made that up...but it works).

Stock equals own and bond equals loan, and most people's portfolios are made of a combination of those two things. Now really, the trick comes down to figuring out how much of your portfolio should be ownership and how much should be "loanership."


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Rhys Martell


This article is for educational purposes only and is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Opinions expressed are those of the owners and writers only. Every effort has been made to compile this material from reliable sources, however, no warranty can be made as to its accuracy or completeness. It may also include forward looking statements concerning anticipated results, circumstances, and expectations regarding future events. Forward-looking statements require assumptions to be made and are, therefore, subject to inherent risks and uncertainties. There is significant risk that predictions and other forward looking statements will not prove to be accurate. Please consult an appropriate professional regarding your particular circumstances. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or the fund facts before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual Funds and Segregated Funds provided by the Fund Companies are offered through Worldsource Financial Management Inc., sponsoring mutual fund dealer. Other Products and Services are offered through Rhys Martell/Well-Built Plans Financial.

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