What can you Invest In?

Stocks

A stock is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own. Units of stock are called "shares." A share is the smallest unit of stock. If someone owns "one share" of a company, they own a tiny fraction of that company. 

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Bonds

A government bond is a type of security issued by the government. Government bonds are often used to finance large projects like building roads or bridges.

Municipal bonds are issued by state and local governments to finance projects like schools, hospitals, or water treatment plants.

Corporate bonds are issued by companies to raise money for their operations.

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Mutual Funds

A mutual fund is a professionally managed investment fund created by money pooled from many investors to purchase securities. Mutual fund investors do not actually own the securities in which the fund invests; they only own shares in the fund itself. 

Different types of mutual funds include:

• Stock mutual funds: These funds invest in stocks and can be either growth or value-oriented.
• Bond mutual funds: These funds invest in bonds and are typically used as a way to generate income. 
• Money market mutual funds: These low-volatility investments invest in short-term debt instruments and typically have a higher interest rate than a savings account.

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ETF (Exchange-traded funds)

An ETF, or exchange traded fund, is a type of investment that allows you to invest in a basket of assets without having to buy each one individually. ETFs can helpdiversify your portfolio and get exposure to a wide range of investments. 

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CD (Certificate of Deposit)

CD, or certificate of deposit, is a type of savings account that typically offers a higher interest rate than a traditional savings account. CDs typically have a fixed term, and you agree not to withdraw your money for the duration of the term. When the term expires, you can cash out your CD and receive the full principal plus interest. 

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Real estate

Real estate is another popular investment choice. Real estate investments can include owning property, flipping homes, REITS (real estate investment trust), crowdfunding platforms, raw land, and commercial real estate. Real estate investing can offer robust long-term returns that are not entirely correlated with the stock market. It’s important to remember that eal estate can be very illiquid in the short term.

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‍Alternative Investments

Alternative investments are investments that don’t fit into the traditional investment categories. These investments can include things like art, wine, or website domains.

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Cryptocurrency 

A cryptocurrency is a virtual or digital currency created to work as a type of exchange through a computer network and is not reliant on any central authority or bank. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, Litecoin, Ethereum, and Monero are all examples of cryptocurrency. 

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Conclusion

There are a lot of different investment options out there, and it can be difficult to know where to start. Some may be a better fit for beginners, while others require more experience and research. When picking an investment, keep in mind that there are different types of investments that offer different rewards and risks. 

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