| Stocks | Buying a share of stock is like buying a tiny piece of the company. Its value can rise or fall. |
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| Bonds | Buying a bond is like giving a loan to a government or company. They pay you regular interest until they return your money. |
| Index Funds | An index fund is an investment that buys the stocks or bonds that make up a market index, like the S&P 500Ā®. Instead of buying individual stocks or bonds, you can buy a single index fund that holds dozens or hundreds of investments. |