|
Every single one of us is in a different personal and financial situation. Therefore, it can be quiet a challenge to find an investment that suits your particular needs. Not all types of financial opportunity will be appropriate for yourself, as the term 'investment' covers a broad range of activities - from multi-billion dollar takeover deals, to shares at your local steelworks. There are thousands of options available to you, but which investments will suit your needs the best? In this article, I'm going to help you get to grips with the different types of investments available. Firstly, there are two types of investment; short term and long term. Short term investments are usually ventures which seek a high turn over, but often come with a high risk. Examples of shorter term investments would include stocks and shares. Long term investments usually focus on a more moderate income over a longer period of time; the risk is low, but so are the profits. Obviously, the type of investment you go with should be entirely dependant on your current position. If you've got a larger investment fund and can sustain losses, then you could find shorter term investments to be more appropriate. On the other hand, if you're a married couple looking to build up their retirement fund, longer term investments would be more appropriate. The concept of investing in shares dates back centuries. By purchasing a share, you purchase part of a company. The value of this share will change depending on how well the company performs - if a company fails, the value of your stock will fall. It's possible to make a really high turnover if you're experienced in stock trading, however this type of investment is extremely risky for the financial newbie. If you do decide to go into this form of investment, you should do some research into the companies you'll be investing in. In the stock trading game, knowledge is key. Bonds would be a much more stable way to invest your finance, as a bond is simply a loan that you give out to a company or government. By purchasing bonds, you are funding the operations of a certain organization, and you are entitled to receive the original bond value back, in addition to interest earned over the loaned period. By investing in solid companies and governments, there is very little risk associated with purchasing bonds, however the profit made from these investments is often quiet insubstantial. You can click here for more information, as discussed by Keith Barrett. This article may be used by any website publisher, though this resource box must always be included in full.
Related Articles -
finance, personal finance, investments,
|
