Most the people that they are not familiar with financial instruments are having wrong impression that they are high profitable and very risky type of investment. Nothing is risky if you have enough knowledge and information about It. However profitability of this type of business is not as good as It seems to be.

Truth is, many rich people invest in stocks and bond and they get amazing returns on that. Those people did not get rich by buying and selling stocks and bonds in most cases. They saved money from their huge salaries as professionals or profits of being entrepreneurs.

However when rich people get a certain amount of money, most of all they want to keep It and expand their wealth. And that is what stocks and bonds are good at. Nowadays bonds have a low interest rate and small price change or even non, and they are usually a safe house for individuals and companies capital. Despite their return is low, they are still more profitable that keeping your money in the bank or just home in a safe box. Shares on the other hand might be a bit more profitable and in some cases with a very good return rate. They can grant you not just with dividend return, but with a good capital gain as well. Stocks are a bit more complicated than bonds, and more knowledge is a must to minimize risk of just wasting your capital. However in a long period stocks have proven that they grow up and bring wealth to their owners. Unfortunately not all the stocks of companies are moving up, and some of them even bankrupt and leave shareholders with bad experience and low amount of money.

For those who passion is stocks and bond, must prepare with a huge volume of knowledge in the sector, business education and how to find reliable information that can determine their course of action. If no information at all about the desired investment is better if you stay away of It. Gather as much as possible information to know what to expect on the certain financial instrument you are dealing with and how the business goes, so you might try to predict what is going to happen. No matter how much knowledge and information you have, no one could know what would happen in future, but It still good to estimate probabilities of success.