Types of Investing

Although it is possible to invest in assets such as real estate, commodities, or precious metals, investing is generally understood to mean putting your money into the stock market.  

The stock market is a place where investors can buy and sell shares of publicly traded companies. Major stock markets include the New York Stock Exchange, Nasdaq, and London Stock Exchange. 

There are several types of investments on the stock market, referred to as asset classes. An asset class is a group of financial instruments that have similar characteristics and behave the same way in the marketplace. Common asset classes include:  

• Stock or shares in a company, also called equities  

• Mutual funds or exchange-traded funds (ETFs), which hold stock or shares in multiple companies  

• Fixed-income securities, which usually mean bonds or notes  

• Cash or cash-equivalents, such as a savings account, certificate of deposit (CD), or money market fund 

 All the different types of investments you make – whether stocks, bonds, mutual funds, or cash equivalents – make up your portfolio.  Click on the images below to learn more.