| Different Kinds Of Securities |
 |
 |
 |
| Written by Shaun Rosenberg |
| Saturday, 10 July 2010 19:20 |
|
You may be thinking about investing your money. If you are it will interest you to know that there are actually quite a few different securities to invest your money into. Each has its own advantages and disadvantages, so what are they?
You may be thinking about investing your money. If you are it will interest you to know that there are actually quite a few different securities to invest your money into. Each has its own advantages and disadvantages, so what are they? 1. Bond Securities The first type of investment out there is called a bond. A bond works in a very similar way to a bank loan, only you become the lender. When you buy a bond you are lending a company or the government money. The company will then make regular interest payments to you. Once the bond comes due the company will then buy it back from you at whatever price the bond is trading at, at that point in time. 2. Commodity Future Contracts A future contract is a contract that allows you to own a specific commodity at some point in the future. As such you benefit from the ups and downs associated with that commodity. Just remember that future contracts are better for short term trading because if you hold the contracts too long you may end up with the commodity and have no idea on what to do with it. 3. Buying Stocks Another way to invest your money is to invest into stocks. These are simply investments that allow you to control part of a company. As the company grows so do your shares of stock. In addition to that, if you happen to own dividend paying stocks you will also make money as the company makes money because they pay you. They can be a fantastic way to invest your money if you pick the right stocks. 4. ETF Investments An ETF is a security that tracks the performance of other securities. An ETF may consist of one or more of the other securities on this list. For example a technology ETF might track, say the top 20 technology companies in the world. Buying ETFs is a great way to get a diversified holding. If you would like to invest in a specific sector in the market and do not know how to pick the best stocks fundamentally you can always buy an ETF. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. If you have any stock market questions visit Shaun's site about the stock market basics Free reprint avaialable from: Different Kinds Of Securities. |