These accounts tend to offer higher interest rates than savings accounts and often give you check-writing privileges. Certificates of Deposit. When you buy a CD, you promise that you're going to keep your money in the bank for a certain amount of time. That's what happens when you buy stock in a company-you become one of the owners. Your share of the company depends on how many shares of the company's stock you own.
Many companies borrow money so they can become even bigger and more successful.
One way they borrow money is by selling bonds. When you buy a bond, you're lending your money to the company so it can grow. The company promises to pay you interest and to return your money on a date in the future. Stocks and bonds can be purchased individually, or you can buy them by buying shares of a mutual fund. A mutual fund is a pool of money run by a professional or group of professionals who have experience in picking investments.