This engaging book offers a primer on stocks and bonds, using easy-to-understand language to explain how they function and why they are important. It will be a valuable resource for both economics students and readers interested in investing.Although news outlets provide daily updates on stock market performance, many Americans have little understanding of how stocks and stock exchanges work. Yet stocks, along with government and corporate bonds, represent two key cornerstones of modern economics. While the average American may think of them as simply two types of investments, stocks and bonds have impacts on the economy that go far beyond the realm of personal finance.The latest volume in Greenwood's new Student Guides to Business and Economics series, Stocks and Bonds gives readers an in-depth yet reader-friendly look at these integral components of the U.S. and global economy. It explores the different types of bonds, how stocks and stock exchanges work, and why periodic crashes and crises occur. It explains fundamental concepts such as risk versus return, interest rates, and behavioral economics, using real-world examples to illustrate key points. It also provides practical tried-and-true recommendations for investing in stocks and bonds.

Offers an at-a-glance chronology of events related to the history of stocks and bonds, allowing readers to trace the evolution of ideas and better understand cause-and-effect relationships

PrefaceIntroduction: Why Is Finance through Bonds and Stocks So Important?ChronologyChapter 1 What Is a Bond?Chapter 2 What Determines Prices and Interest Rates on Bonds?Chapter 3 How Do Bond Markets Work?Chapter 4 How Do Stocks and Stock Markets Work?Chapter 5 What Is the Federal Reserve, and How Does Monetary Policy Work?Chapter 6 What Causes Stock Market Bubbles and Government Debt Crises?Chapter 7 How Should You Invest in Stocks and Bonds?Conclusion: The Future of Bonds and StocksQuestions for Further ExplorationBibliographyIndex