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Stocks and Bonds

Show aired on April 2nd, 2022

What is a stock? What is a bond? How do they work?

Stocks: what they are and how they work. Stockholder owns part of the company. Stocks are sold at an auction, so the price does not reflect the value of the company. Your money doesn’t actually go to the company.

Bonds: you are investing in the debt of a corporation or government, basically giving them a loan. Have a time limit. Interest rates can affect bonds as well.

Why is it important to stay diversified in stocks and bonds? What about just riding out the rise and fall of the market?

What is the danger of following the “guru” who got their guess right once?


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    Though Mike Miller is an employee of Ronald Blue Trust, Talking Money® represents his individual views, and not those of his employer or any other sponsor of the program. During the program, Mike may discuss market trends as well as specific financial planning techniques and investment ideas. These discussions are for general information only and are not intended to provide specific advice or recommendations to any individual or organization. Work with your attorney, or accounting, or investment professional for specific individual advice and services. Any securities or investment products discussed on Talking Money® are not insured by the FDIC, are not a deposit or other obligation of or guaranteed by any bank, and are subject to investment risk, including possible loss of principal amount invested. Some shows contain time sensitive material that should not be relied upon without verifying.

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