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Stock Investing Information | Stock Market And Trading » Types of Investments http://www.1ststockinvesting.com Everything You Need To Know About Stock Trading and Investing Fri, 16 Apr 2010 07:59:44 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Types of Investment Securities http://www.1ststockinvesting.com/stock-articles/types-of-investment-securities/ http://www.1ststockinvesting.com/stock-articles/types-of-investment-securities/#comments Sat, 06 Feb 2010 06:57:15 +0000 articleranks http://www.1ststockinvesting.com/stock-articles/types-of-investment-securities/ Investing is one of the keys of being rich. It is a known fact that the people who are truly wealthy invest their money and have it grow over time. Many investors have even gotten rich simply through their investments. This brings up the question, how can you actually invest your money? The following is a list of some different ways to invest your money.

1. Stocks

Stocks are simply shares of a company. When you buy a stock you are buying a portion of the company and as such your share should increase as the company grows over time. This allows an investor to make by picking companies that they believe have a strong future.

Some companies will even offer dividend stocks which means they pay you a percentage of their earnings. If you own enough shares of stocks you may simply be able to live off of your share of the company’s earnings.

2. Bonds

Another way to invest is to buy bonds. When you buy a bond you do not buy a percentage of the company, but instead you buy part of the companies debt. For instance, say you buy a bond, you have given the company money to do with as they please. In exchange you recieve interest payments and are payed back at some point in the future, in a sense you have become the bank.

3. Commodities

Well, what is commodity trading? Well when an investor buys a commodity future they buy a given commodity such as Gold or water at a certain time in the future. If they do not wish to actually own the commodity they can sell it before expiration and wither make or lose money based on how the value of that commodity and the futures contract where changed.

4 ETFs

So, what exaclty are ETFs? These are investments that consists of a lot of other investments. Each ETF tracks a different part of the market. For example an airline ETF may consist of the top 20 airline companies. Investing into an airline ETF would be a great way to invest into the airline industry without having to single out a single stock.

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