The main difference between a bond and a stock is that a bond represents a loan made by an investor to a company or government, while a stock represents ownership in a company. Bonds typically offer fixed interest payments and return of principal at maturity, while stocks offer ownership in a company with potential for dividends and capital appreciation. The impact on investment decisions is that bonds are generally considered less risky but offer lower returns, while stocks have higher potential returns but also higher risk. Investors often choose a mix of both bonds and stocks in their portfoliOS to balance risk and return.
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