Money, Stocks, and Bonds - Differences in Financial Assets (According to Study.com...)

Money… Stocks… Bonds… Money, Stocks, Bonds.
So, what’s the difference? Find out in this video, with transcript below:
( LEARN MORE on Study.com: bit.ly/StudyFinancialAssets )
Money, Cash, Currency - It’s all the same thing. The value doesn’t come from the actual paper or metal it is printed on, it comes from the credit of the government that issued the money.
If it weren’t for money, we’d have to barter or trade. Think of it this way - you want to get your hair cut. Without money, you may have to hand over tomatoes you grew in your garden to get an appointment.
So, that’s money - what about stocks?
Stocks are also just a piece of paper that represents something of value. The value in a stock is an ownership stake in a business.
Simple example - a lemonade stand. You have four dollars ($4) to start the business. But you need ten bucks ($10) to get it off the ground. Your parents give you three dollars ($3) in exchange for thirty percent (30%) of your business. Your friend gives you one dollar ($1) for ten percent (10%) and your brother gives you two dollars ($2) for twenty percent (20%). You and anyone who contributed to the company now have stock in the company.
Bonds are basically loans. When a company - or even the federal government - needs money, they can issue a bond. When the bond has matured to a predetermined date, the holder of the bond is repaid their investment plus interest. When it comes to making and losing money, bonds are typically safer investments than stocks.
We may not agree on the best investment, but we can all agree that money guns are super fun!
#Money #Stocks #Bonds #Assets #Finance #FinancialAssets #Currency #Cash #PersonalFinance #Finances #Investing #Tips #Students #Learning #OnlineLearning #EdTech #Education
Follow Study.com on Social Media:
Facebook - / studydotcom
Linkedin - / studydotcom
Twitter - / studydotcom
Instagram - / studydotcom
Pinterest - / studydotcom
Subscribe to our KZbin channel for more study tips and educational videos!