Investing in bonds and stock market investing are classified as investing in securities. Your risk appetite decides how much to invest and in which class. However during inflation times bonds give lower returns, but still are more safe as compaired to stocks. Stock prices are volatile and have more risk associated with them, but can yeild more.

Some of your money should be invested in bonds, while your balance money should be invested in stocks. The younger you are, the more you should opt for stock market investing, investing more in bonds as you get older. When investing in the stock market you should invest in shares of companies with a potention for growth and a good track record.

There different sizes and categories of shares- large, mid and small caps and penny stocks. A beginner should invest in large and mid cap companies and he can consider investing a small portion in small caps and hot penny stocks only after he has gained experience. These small caps and hot penny stocks are the riskiest but give the largest returns if handled properly which needs expertise and nerves of steel.

You should not jump in something Stock market investing; it needs a lot of time to learn the basics of stock market investing. You can start investing once you have gained some experience. It is suggested to invest small amounts of your money over a period of time rather than investing all the money at once.

Investing in bonds is easier compared to stocks. Your banker or broker can provide you a list of government bonds and highest rated corporate bonds to select. However, bond investing gives good returns only if you hold them for a longer time frame. Investing in shares, on the other hand, is suitable not only for those who want to invest for a short period but also for investors looking to long-term investments.

Its upto you to decide which shares to buy and ignore tips. Special care should be taken in the case of hot penny stocks as they are riskiest investments. You shoeld do your complete research of the company and all other factors before considerring investing in them. Happy investing.