Bonds are another type of lending investment similar to CD's. Bonds can be issued by a bank or company. The best way to make your money grow is through the stock market. Historically the stock market has on average returned 11 percent annually. However, the stock market can be the most volatile place in which you can lose a lot of your money.
Stocks are shares of ownership in a company.
Companies do this to raise money that will translate into growth. The growth of the company will affect the amount of money you invested in the company. You can buy 100 shares of stock in that company. That's a 20 percent return in one day compared to a bond's sluggish 7 percent return each year. Risk is a factor that plays a big role.