Buying a share is owning a tiny slice of a business; buying its bond is lending to it.
01
Go deeper
Shareholders may receive dividends and may gain or lose when the price changes. Dividends are not guaranteed. Share prices reflect expectations about future results as well as changing market conditions.
02
Make it concrete
Hypothetical illustration. If a hypothetical $50 share rises to $55, the price gain is 10%, excluding dividends, costs and taxes.
03
When you read a headline
A rising stock index does not establish that every household or business is doing better.