Types of Investment

Stocks

An investment that represents ownership in a company or corporation.

Dow Jones Industrial Average (DOW)

Lists the 30 leading industrial blue chip stocks.

Standard and Poor's Composite Index

Covers market activity for 500 stocks and is more accurate than DOW.

National Association of Security Dealers Automated Quotations (NASDAQ)

Monitors fast-moving technology companies.

Bull market

The market is going well, and investors are optimistic about the economy purchasing stock.

Bear market

The market is doing poorly, and investors are not purchasing stocks but selling stocks already owned.

Broker

A person licensed to buy and sell stocks, provide investment advice, and collect a commission on each purchase or sale.

Bonds

A security representing a loan of money from a lender to a borrower for a set time period, which pays a fixed rate of interest.

Mutual Funds

Investments that pool money from several investors to buy a particular type of investment, such as stocks.

Real Estate

An investor buys pieces of property, such as land or a building, in hopes of generating a profit.

Certificates of Deposits/Savings

Deposits that earn a fixed interest rate for a specified length of time, with longer time periods having a greater rate of penalty return.

Collectibles

Unique items that are relatively rare or have high value, such as artwork, baseball trading cards, coins, automobiles, and antiques.

Risk vs

On average, stocks have a high rate of return, but with a higher rate of return comes greater risk. Stocks provide portfolio diversification.