Investing: The novice’s guide to choosing an investment
August 27, 2006
>> Bond
When purchasing a bond, you are basically lending your money to a company or government to cover a debt. In turn, they agree to pay you back that amount with an added interest.
>> Stocks
A stock is a share or portion of a company. When you buy one you become part-owner in that business. Unlike other investments, such as bonds or savings accounts, stocks are much more volatile.
>> Mutual fund
This is a financial tool that combines stocks and bonds. When you invest in a mutual fund, your money is pooled with other investors and then invested by an expert. This is good for someone who wants a stronger return from their money, but doesn’t want to do the research.
>> Other investments
These include all precious metal, real estate and more. Although they do offer a high-reward incentive, they also are high-risk, making investing in them very time consuming.
>> Check out these financial Web sites
