1) Stocks are shares of ownership in a company which makes money from its operations or profits.  The price of a stock rises and fall, depending on how well the company does and the perceived future value.  Stock derivatives, (Exchange-traded funds, Options, and Future contracts), have grown in popularity.  While potentially more affordable, derivatives are speculative moves of stocks or other investment types.

2) Bonds are interest-bearing debt security issued by governments or corporations.  Bonds are sold at a fixed yield and pay coupons or interest.  A bond must be paid back to the investor at a named date, usually several years later.  Government bonds tend to be more stable than corporate bonds.