One of the most basic things to learn when thinking about investing in the stock market is the difference between stocks and bonds. Investment portfolios are usually broken down into three categories: stocks, bonds and cash. Everyone knows what cash is. Although cash is self-explanatory you must learn the difference between stocks and bonds. Learning about bonds and stocks and how to trade them in the market can be extremely daunting. There is literally, thousands of investment ‘experts’ claiming to know all the secrets of the stock market and willing to sell these secrets to you for a small fee. There are also scores of books, newsletters and websites offering to help you learn about stocks and bonds.