Stocks: Stocks represent ownership shares in a corporation. When investors purchase stocks, they become shareholders and have a claim on the company's assets and earnings.
Bonds: Bonds are debt securities issued by governments or corporations to raise capital. When investors buy bonds, they are essentially lending money with the expectation of earning interest over time.
Federal Reserve System (The Fed): The Federal Reserve is the central banking system of the United States. It plays a crucial role in regulating monetary policy and controlling interest rates, which greatly influences investment decisions made by individuals and businesses.