Your Questions About Stocks And Bonds

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Michael asks…

Which one would be better to invest in stocks or bonds?

I was told bonds have a %4.32 interest.But my company will meet 50 cents for every dollar up to 6% on stocks. But stocks are unreliable and economy is not good right now. Would it be smarter to invest in bonds?
Yes I’m talking about a 401(k) plan they will match 50% of whatever I put in up to 6% of my pay check.

financi4 answers:

Stocks. Faster returns and more liquid. That means you can sell it at any time. With bonds, you need to find a buyer first.

William asks…

what is the difference between stocks and bonds? which one is better investment?

whats their differnce? i have no idea about both.but well, since the banks do not give enough interest these days i thought maybe bonds or stocks are better.so what are they? how do they work? how is interest calculated? which one is less riskier? any advice?

financi4 answers:

Go to your library or bookstore and get a book called
Investing for Dummies or The Idiot’s Guide to Investing.
These books are very good.
They explain everything clearly.
Please get that book before you start investing.
One note: Stay away from bond mutula funds…

Chris asks…

A distinction between stocks and bonds is that?

A) bonds can be traded many times in the bond market, while stocks are non-transferable.
B) although the return on a bond is determined by the forces of supply and demand, the
return on a stock is set by the stock exchange.
C) bonds cannot be sold to anyone other than the company that issued it while stocks can
be resold to anyone.
D) stocks represent ownership claims to the company and bonds do not.
E) bonds must be held for a fixed number of years whereas stocks can be bought and sold
at any time.

financi4 answers:

D. Bondholders, though, are ahead of equity holders in a liquidation.

Joseph asks…

what is the difference bwt stocks, bonds and shares ?

giv me a detailed explanation regarding al three and their differences..plz.

financi4 answers:

Stocks and shares refer to the same thing. The term shares used here refers to “Equity Shares”. “Equity Shares” are the most common types of shares and are the most widely traded stock market instruments.

“Equity” means ownership. Anyone who holds one share of XYZ company owns a portion of the company.

To know more like shares visit: http://anandvijayakumar.blogspot.com/2008/10/equity-shares.html

Bonds are nothing but debt obligations for which the person who issues you the bond pays you interest (Like the ones you do in a bank – Fixed deposits) You can expect returns like that of a bank deposit from bonds.

Cheers,
Anand
mail me at anandvijayakumar@ymail.com if you need
any more details.

Mark asks…

Father died with living trust leaving stocks and bonds to me. What happens when I sell the stock?

I would like to know what the basis is for the stocks and bonds that were in a living tust. When my father died I became the beneficiary of the stocks and bonds. I sold them and I need to know what the basis is. Is it:

1. The amount he invested in the stocks and bonds
2. The FMV of them at the time of death
3. Other

Thanks for your time

financi4 answers:

I think you need to talk with a tax accountant. I think its the FMV at the date he no longer controlled the trust (death).

Answerers 1 & 2 DO NOT UNDERSTAND your question. Although I have done taxes for several years – I haven’t had anyone tell me they sold assets from a living trust- so I did not have to research that issue.

Ken asks…

What are some aggressive stocks, or bonds to invest in?

I have a retirement funds that I am contributing to, but as a young married man, I want to also invest some money into the stock market or bonds over a long period of time. Since, I have time I feel I can be aggressive, I just don’t know where to put our money. For instance, in the government, the most aggressive funds are the S and I funds, which are international I think. Are there funds like these that you can go through an online broker and invest in? Any advice would be greatly appreciated. Thanks!
*retirement fund*
I am 24. I am not really looking towards retirement with this. I have a TSP for that. I am thinking 5-10 years, or more depending on need.

financi4 answers:

I hope the retirement funds are being aggressively invested most of all. IAU – gold will rise PGJ – China still will make you $$. EWA-ustralia will benefir from China. ADX & PEO-2 solid closed end funds that make money consistently. The latter high on energy. They & the etfs all avail through brokers. Not all or nothing bets – can make money over time.

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