Investing foundations

A stock is a share of ownership in a company. Shareholders have a residual claim: lenders are paid before them if the company fails. A bond is a loan to an issuer, not an ownership share. Bond prices can fall when rates rise or when the issuer becomes less likely to repay. A fund pools holdings under a stated mandate. An ETF trades on an exchange, but its risk depends on what it holds, fees and structure—not on the ETF label alone.

Price is what someone will pay now. Value is an estimate built from uncertain future cash flows. A low share price does not prove a company is cheap: compare price with shares outstanding, earnings, debt and alternatives. Neither stocks nor bonds guarantee positive returns.