Investing money can be tedious and complicated for investors planning to earn money at a faster pace. In general terms, stocks provide long-term growth potential, while bonds provide a steady income stream.

Stocks are certificate of ownership of a fraction of the capital of the company that issued it. The stocks are listed on a stock exchange, and are also called share or equity. On the other hand, bonds are debts issued by companies or governments who guarantee payment of the original investment plus interest by a specific time period.

The stock generally reflects the earning experience of the firm, and whether it shows profit or loss. While investing in the stocks of any company, there is no schedule of repayment and no stated rate of return. There are variations of risk and reward while one invests in stocks. The companies having long histories of producing earnings and paying dividends issue