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08-25-2008, 05:09 PM
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Status: Administrator
Join Date: Jul 2007
Posts: 9,596
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Defining bonds
Bonds, on the other hand, represent money that has been borrowed
by a company or a government agency. When the loan is repaid, the owner of the bond gets the money back with interest. When you invest in a mutual fund, your money goes with the money of many other people to buy stocks or bonds. As the mutual fund that owns the stocks or bonds profits from these investments, so do you.
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