Understand Your Investment Options
It’s important to understand each instrument and how much risk it carries. The most popular investments for those just starting out include:
Stocks:
- A stock is a share of ownership in a single company. Stocks are also known as equities.
Bonds:
- A bond is essentially a loan to a company or government entity, which agrees to pay you back in a certain number of years.
Mutual Funds:
- A mutual fund is a mix of investments packaged together. They allow investors to skip the work of picking individual stocks and bonds, and instead purchase a diverse collection in one transaction.
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"I can do all things through Christ who strengthens me.” — Philippians 4:13
Learning the basics about investing can be pretty complicated and overwhelming without the proper information. Hopefully this guide can help you get started.
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The idea is part of this collection:
Learn more about moneyandinvestments with this collection
How to manage risk
How to analyze investment opportunities
The importance of long-term planning
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