what is the difference between stocks, mutual funds and bonds?

Answer 1

Extremely simplified::::::::::::::::::::::::::::::

Buying stock is actually buying a little tiny piece of the company.

Mutual funds means you give your money to someone who decides which company and/or kind of company (science/industry/etc) is making money and they pool lots of peoples money and buy little pieces of several companies

Bonds. There's different kinds of bonds. There're savings bonds. You buy these at the bank with a specific maturity date and a specified ending amount.
There're municipal bonds. These you invest a specified amount in a "normally" building project. They use your money and agree to reimburse you a specified amount later for it's use.
And there are also zero coupon municipal bonds which are like muni bonds except the interest you receive isn't federally taxed.
Bonds normally take MANY years to mature but can be cashed in with a penalty.
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Answer 2

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Answer 3

When one owns common stock, one owns a part of the company.

Mutual funds are bundles of stocks and/or bonds. The mutual fund may be composed of stocks from particular sectors such as energy, technology, retail, etc., or be composed of particular duration and risk bonds.

Bonds are debt. When you own a bond, you are loaning the issuing company money. The terms of the bond determine the pay back time and the interest paid to you.
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Answer 4

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/c8109