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Investing is the act of allocating , usually money , with the expectation of an or profit . There are different types of , including stocks and .
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Bonds are issued by and corporations when they want to money . By buying a bond , you're giving the a , and they agree to pay you back the face value of the loan on a specific date , and to pay you periodic payments along the way , usually a year .
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Unlike stocks , bonds by companies give you no ownership . So you don't necessarily from the company's , but you won't see as much impact when the company isn't doing as well , .
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Companies can issue bonds , but most bonds are issued by . Because governments are generally and can raise if needed to cover debt payments , these bonds are typically - quality .
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It is important for to do their and understand the potential and rewards before their money .