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Sensor and actuator selection problems (SASP) are some of the core problems in dynamic systems design and control. These problems correspond to determining the optimal selection of sensors (measurements) or actuators (control nodes) such that certain estimation/control objectives can be achieved. While the literature on SASP is indeed inveterate, the vast majority of the work focuses on linear(ized) representation of the network dynamics, resulting in the placements of sensors or actuators (SA) that are valid for confined operating regions. As an alternative, herein we propose a new general framework for addressing SASP in nonlinear dynamic systems (NDS), assuming that the inputs and outputs are linearly coupled with the nonlinear dynamics. This is investigated through (i) classifying and parameterizing the NDS into various nonlinear function sets, (ii) utilizing rich Lyapunov theoretic formulations, and (iii) designing a new customized branch-and-bound (BnB) algorithm that exploits problem structure of the SASP. The newly designed BnB routines are computationally more attractive than the standard one and also directly applicable to solve SASP for linear systems. In contrast with contemporary approaches from the literature, our approach is suitable for finding the optimal SA combination for stable/unstable NDS that ensures stabilization of estimation error and closed-loop dynamics through a simple linear feedback control policy.