Common Types of Investments
February 14th, 2006
Apart from the most common Types Of Investments; stocks, bonds, mutual funds, cash, and annuities, below are other common Types Of Investments available to investors today.
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Money market securities
Forms of debt that mature in less than one year and are very “liquid.” Sometimes offered by your local bank as an alternative to your savings account.
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CDs
A savings certificate that entitles the bearer to receive a small amount of interest. Usually offered by your local bank as the “next investment up” from your savings account.
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Futures
A financial contract that encompasses the sale of financial instruments or physical commodities for future delivery, usually on a commodity exchange. Strictly for advanced investors only.
A ‘privilege’ sold by one party to another that offers the buyer the right, but not the obligation, to buy (which is called a ‘call’) or sell (which is called a ‘put’) a security at an agreed-upon price during a certain period of time or on a specific date. Also limited to advanced investors.
Note: If you don’t see the type of investment here that you have a question about, please email us and we’ll be happy to include it. Otherwise, this list pretty much covers all of the top-level Types Of Investments. For sub-types, such as “Blue-chip stocks,” or “Bearer Bonds,” we can suggest other websites for you, but the information here is primarily for beginner investments, or at least learning How To Invest wisely in the first place…
So, that about wraps it up for the basic investment vehicles you have available to use as tools to in order to reach your goals.
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