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Stocks Bonds refer to financial instruments that represent ownership in a company or corporation. Stocks represent ownership in a corporation, providing shareholders with voting rights and potential dividends. Bonds, on the other hand, represent debt owed by a corporation or government entity to investors, who receive periodic interest payments until the bond matures. Both stocks and bonds are commonly traded on financial markets, with prices fluctuating based on supply and demand, as well as various economic factors. Investors typically use stocks and bonds as a way to diversify their portfolios and potentially earn a return on their investment.