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Top 5 reasons stocks are better investment options than bonds

stock vs bondsShares are issued by the large and small companies to finance their operations.It is one of the effective way of raising finance.Companies have to pay quarterly and yearly dividends to the shareholders for using their finance .Bonds are issued by the companies to raise finance for their operations.They are just like loans issued by the banks to the individuals or companies.Bonds are issued by the companies to get finance and in return they have to pay interest payments to the bondholders.

Stocks and bonds are one of the best investment options for the investors.But most of the financial experts favor stocks as they offer high rate of returns to the investors.We are making decisions easy for the investors by giving advantages of the stocks investment in the following paragraphs.

1.US economic growth

According to the estimates made by the US commerce department ,US economy will grow by 3.7 % in the year 2015-16.This is a very good sign for the investors as high economic growth boosts the stock markets.So this means that US economic growth is posing a very good opportunity for the stock investors.Most of the experts believe that high economic growth is the best time to invest in the stocks.So the year 2015 is the best time for  investment in the stocks.The strong economic growth and strong dollar will improve the investing power of the retail investors.

 

2.Tax Efficient

Common stock is the most tax efficient investment option.They are mostly taxed as the long term capital gains.Investors can easily buy and hold their investment for the long period of time.This thing is one of the most important advantages of the stocks.To take tax advantage of common stock,investor hold these common stocks for at least one year.According to the stock experts, ETfs are the most tax efficient investments for the small and large investors.

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About Emaad Qureshi