Stock Market Vs Cd

The stock market is a collection of markets and exchanges where activities such as buying, selling, and issuing shares of publicly-held companies occur. It serves as a platform for investors to trade equity securities and provides companies with access to capital in exchange for giving investors a stake in the company. Stock prices are determined by supply and demand dynamics, and the market reflects the overall economic health, investor sentiment, and future growth expectations of businesses.

A Certificate of Deposit (CD) is a financial product offered by banks and credit unions that provides a fixed interest rate over a specified period of time, typically ranging from a few months to several years. CDs are considered low-risk investments, as they are insured up to a certain limit by the Federal Deposit Insurance Corporation (FDIC) in the United States. Investors agree to leave their money in the CD for the term length, and in return, they usually receive higher interest rates than regular savings accounts, making them an attractive option for those looking to save with a guaranteed return.