How does selling shares on the stock exchange benefit companies? How does buying shares in a company benefit an investor? When you purchase shares of a company in the market, who are you buying those shares from? As an investor, what is the risk involved in investing in companies on the stock exchange? In your own words, explain the difference between stocks and bonds. Why might bonds be a good choice if you are interested in earning income? Why would it be a good idea to mix stocks and bonds in your investment portfolio?