Sunday, August 19, 2007

The types of investments

What does a diversified portfolio mean? What are the different vehicles for investing?

Here's a good list of 20 different types of investments. To be honest, any business contract where you give over money, goods, or services is an investment. There are certainly very esoteric derivative contracts traded among hedge funds and super rich individuals, but there's a reasonably liquid and well-known market for a good 20 types of investments.

Depending on your life situation and the market, having percentages in one or the other will be more appropriate.

I'd be happy to answer questions, although I'd have to consult with my sister (stock broker/financial advisor) or brother-in-law (bond analyst) for more esoteric questions. I'm sure Animal Mother (trader/manager) and I think Ketchup has daytraded.

American Depository Receipt (ADR)
Annuity
Closed-End Investment Fund
Collectibles
Common Stock
Convertible Security
Corporate Bond
Futures Contract
Life Insurance
The Money Market
Mortgage-Backed Securities
Municipal Bonds
Mutual Funds
Options (Stocks)
Preferred Stock
Real Estate & Property
Real Estate Investment Trusts (REITs)
Treasuries
Unit Investment Trusts (UITs)
Zero-Coupon Securities


http://www.investopedia.com/university/20_investments/

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