A stock is a tiny amount of ownership in a large business. Generally, if the business is doing well, then the stock will be worth more and more money, and it can even pay you some money back if it does well enough.
pros-and-cons-of-stocks.html
Bonds are a basically a loan made to the company or government that sells it. In return, you can collect interest on it twice a year and it is paid back in full it at the end of its life.
pros-and-cons-of-bonds.html
A fund can be a collection of many different things, put together to make the risk of investing much smaller. For the most safety, for instance, it could be made up of lots of different types of Government bonds and a small amount of interest-earning cash. For a very aggressive fund, it is suggested to have a high percentage of well-performing stocks mixed with a certain amount of bonds and cash.
pros-and-cons-of-mutual-funds.html
Just because they are so popular with insurance companies these days, I’ll briefly cover annuities as well. These are considered an ‘upper-level’ investment, so I hesitate to mention them here. Luckily, their premise is very straight-forward: An investment that has an absolute guarantee!
what_are_annuities.html
The word "Cash" is used here meaning any form of money that can be withdrawn quickly, such as money in a checking or savings account. It could even be Gold or in other traded commodities, that have a standard trading rate. (Think: ‘No appraisal.’)
cash-investing.html
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.
common-types-of-investments.html
In case you've heard about Tax free or Tax Deferred investments, I’ll cover this area quickly here as well, although they are just variations on the Bonds and Funds we spoke of in the earlier chapters.
tax-free-vs-tax-deferred.html
Below is the definition of a forward contract price, formula, and example of how a forward contract is done. This is not forward contracts basics.
how-do-forward-contracts-work.html