What are the differences between stocks, bonds, and mutual funds

[KylaMadden]

What are the differences between stocks, bonds, and mutual funds

[MarleyCraig]

Sure! Here are four different ways to explain the differences between stocks, bonds, and mutual funds:

[BlakeBenitez]

**Straightforward Explanation**: "Alright, so stocks are basically ownership in a company. When you buy stocks, you own a piece of that business. Bonds, on the other hand, are like loans you give to companies or the government—they pay you interest over time. Mutual funds are a mix; they pool money from lots of investors to buy a variety of stocks and bonds, which helps spread out the risk."

[EstherDejesus]

**Casual Comparison**: "Think of stocks as owning a slice of pizza—when the company does well, your slice gets bigger. Bonds are more like lending money to a friend; you expect to get your money back with some extra for your trouble. Mutual funds are like a pizza party where everyone chips in, and you get to share a bunch of different slices without picking just one!"

[LelandMorales]

**Simple Analogy**: "Stocks are like owning a car; you have full control, but if it breaks down, that’s on you. Bonds are more like renting a car—you get to use it, and then you return it, plus you pay a bit for the ride. Mutual funds are like a carpool; you all share the ride, which makes it easier and less risky if one car has issues."