FEDERATED STOCK AND BOND FUND, INC.
Class A Shares
Class B Shares
Class C Shares
SUPPLEMENT TO PROSPECTUS DATED DECEMBER 31, 1997
Scott B. Schermerhorn is no longer a portfolio manager for Federated Stock and
Bond Fund, Inc. In the subsection of the prospectus entitled "Adviser's
Background," please delete the biography of Scott B. Schermerhorn in its
entirety. Michael P. Donnelly remains as portfolio manager of the Trust.
Following the section containing Mr. Donnelly's biography please add the
following:
Charles A. Ritter has been the Trust's portfolio manager since October
1998. Mr. Ritter joined Federated Investors, Inc. in 1983 and has been a Vice
President of the Trust's investment adviser since 1992. Mr. Ritter is a
Chartered Financial Analyst and received his M.B.A. in Finance from the
University of Chicago and his M.S. in Economics from Carnegie Mellon University.
[GRAPHIC OMITTED]
Cusip 313911109
Cusip 313911208
Cusip 313911307
G01407-10 (10/98)
502901 [GRAPHIC OMITTED]
