Trading in stocks, bonds and other investment trading is not really my forte. Though I’m really tempted to try one of them once in a while, I still wouldn’t pursue it because I’m really afraid of risks. I rather gain nothing than losing something by risking my savings.
Yes, I want to play it safe. ^_^
I am not into this kind of investment stuff but I don’t restrict myself from reading investment tips every now and then whenever I stumble on a few finance articles online. It wouldn’t hurt reading them or they might finally convince me to invest… Well, I don’t know.
Here’s a little Investment 101 for us from investopedia.com… types of investment.
Bonds. This type of investment is the one that really makes me think of investing because its risk-free.
… is commonly used to refer to any securities that are founded on debt. When you purchase a bond, you are lending out your money to a company or government. In return, they agree to give you interest on your money and eventually pay you back the amount you lent out.
This type of investment might be risk-free but the down side is you’ll be getting a lower rate of return than other investment securities.
Stocks. An investment type in which if you buy it you’ll be part owner of the business. Now that you are a part owner, you are entitled for the company’s profits, and not to mention losses as well, through allocation. The profits you received are called dividends. You can also sell your share of stocks to anyone who is interested or ask someone on how to short sell stocks if you really want to dispose of your shares.
Mutual Funds. I’m not really familiar on how this works but this is a collection of stocks and bonds, according to investopedia.com. I have seen that this is offered in some insurance companies and not only in finance companies. Mostly, professionals handle this stuff.
I said that I’m thinking a lot of times whether I invest or not, but there is a greater chance that I will get the bonds rather the stocks and mutual funds. I just have to find where can I really put my money… everyone wants a safe investment, right?