Scribd
Upload
674 views1 page

Types of Investments

There are two main types of investments: borrowing money and collecting interest through vehicles like certificates of deposit, bonds, and money market accounts; and buying and selling shares of companies as financial investments where the value is proportional to the company value. Mutual funds combine funds from multiple clients which are then invested by professional managers across asset classes like stocks, bonds, real estate, and other securities to diversify risk. Investment styles also depend on risk tolerance, with low-risk options including risk-free bonds and CDs for retirement, conservative funds balancing risk and returns, and higher-risk aggressive stocks for potentially higher profits.

Uploaded by

IOJIK IOJIK
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
674 views1 page

Types of Investments

There are two main types of investments: borrowing money and collecting interest through vehicles like certificates of deposit, bonds, and money market accounts; and buying and selling shares of companies as financial investments where the value is proportional to the company value. Mutual funds combine funds from multiple clients which are then invested by professional managers across asset classes like stocks, bonds, real estate, and other securities to diversify risk. Investment styles also depend on risk tolerance, with low-risk options including risk-free bonds and CDs for retirement, conservative funds balancing risk and returns, and higher-risk aggressive stocks for potentially higher profits.

Uploaded by

IOJIK IOJIK
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Types of investments

There are two types of investments, those that borrowing money and collecting interest include
certificates of deposit (CDs), bonds and money market accounts or buying and selling company shares.

Borrowers can use the money to invest in a variety of other securities. Shares are part of a
financial investment in a company. Equity is the total value of shares that someone owns in the
company, their value is proportional to the value of the company.

A mutual fund is an investment managed by a professional manager, combining the funds of


several clients. In the future, using these funds in other investments such as real estate investment,
which involves the purchase(печес), sale and lease of land and buildings.

Investment styles

A key element that will determine the style of investing is risk tolerance.

People who naturally have a high level of risk aversion use investments that are virtually risk-
free, such as bonds and certificates of deposit. These personal investments can be used for support after
retirement.

There is also a conservative approach to investing, which preserves the comfort zone and
protects against market fluctuations. Invest in mutual funds to limit risk but increase profits.

The third approach to investing is a more aggressive , for example in stocks.

You might also like