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Types of investing P2 - Coggle Diagram
Types of investing P2
Stocks
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Low risk stocks: Established companies, banks, natural resources
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You may buy stocks from full-service investment firms, discount brokeage (online), portfolio manager (if you have over $250 000
Primary market
Where the first sale of stock by a private company to the public happens --> Initial public offerings
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Stock Ticker
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Will tell you shares traded, at what price, and how much is changed by.
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Margin
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Amount borrowed incurs interest, so this must be done quickly
If stock goes down, you're losing the borrowed money. You must put more money in, unless the firm has the right to sell the stock
Could lose more money than invested, costs more to invest
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Bonds
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Bond is purchased at a specific price with a specific interest rate. High minimum is required to invest
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Equity
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Dead equity: Money tied up in a house that you can't use to invest. You can't make this liquid unless you decide to sell the asset.