What Is the Difference Between A Stock Exchange and A Bank?

Dear Ms.Thaiyal Nayaki!

Greetings!

A stock exchange is an open market place where financial instruments like shares (also called stocks) and bonds are traded. In earlier days brokers used go physically to the stock exchange and used to buy and sell shares and bonds on behalf of their clients/ customers. Nowadays with the advent of internet these trades are conducted in an online format.

A bank is an organisation which which collects deposits from customers and lends to a different set of customers. Deposits are collected in various categories like savings, fixed, recurring deposits, etc. Banks pay interest to depositors and charge interest from borrowers. Banks also render allied financia; services like issuing ‘Bank Guarantees’, opening ‘Letters of Credit (LCs)’ etc., for a fee.

If you want to learn more about finance and investing, you may regularly visit my blog,Value Investing, which is updated quite frequently.

Thank you,

Anand

Please Note: This is a reproduction of the question I had answered on the website ‘Quora’, which I thought could be useful to the visitors to this blog site also.

I don't want my money to be invested in stock/ mutual funds . Where can I invest it and let it grow with absolutely no risk involved?

Dear Friend!

You seem to be extremely cautious and risk averse regarding investing. This is very good and very important principle. My Guru Warren Buffett, a master value investor, also warns repeatedly “Do Not Loose Money”. However based on his quote, “Risk Comes From Not Knowing What You Are Doing”, I ha”ve penned the article, wherein I have endevoured to show that risk does not lie in any particular instrument like share or bond nor is safety ensured by supposedly safe instruments

I am a value investor and like you and Warren Buffet is also highly risk averse. But being against risk does not mean shunning a particular class of assets or instruments but means learning and developing required knowledge to avoid risks.

I suggest you please read the book “Intelligent Investor - The Investors' Bible” and visit my blog “Value Investing” to learn safe and risk averse investing and become rich in the long term.

Thank you,

Anand

Please Note: This is a reproduction of the question I had answered on the website ‘Quora’, which I thought could be useful to the visitors to this blog site also.