hi,
An investment is a purchase that is completed with money that has the potential to produce income or a profit. Things that naturally lose value over time and with use are not investments.An investor is a person or entity who outlays capital in order to produce an income or to make profits. Investing is the act of putting forth capital with the expectation of income or profit. Personal investing is buying financial securities or property for the purpose of making a profit.
What are the main categories of investments?
There are three main categories when you are considering investments. Each category breaks out into various opportunities that may suit your financial plan.An equity-related investment includes stocks, options, derivatives, venture capital, index funds, and etc.Low-risk investments include bonds, CDs, and savings accounts. Bonds are when you buy a debt that is expected to be repaid. Since they are considered low risk, they tend to provide a lower reward.
Some examples of cash or cash-equivalents investments include interest-bearing savings accounts or money market funds.
A portfolio is a term that refers to your particular asset collection. It might include the following types of securities:
Stocks
Bonds
Mutual funds
Money market funds
Exchange-traded funds
thanks