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The difference between stocks, bonds, and commodities


The difference between stocks, bonds, and commodities

Stock: The shares of a company or corporation.
Bonds: A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
Commodities: an article of trade or commerce, esp. a product as distinguished from a service.

While bonds generally promise a fixed return, earnings on commodities and stocks go up and down as determined by the free market.

Reference: http://dictionary.reference.com

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