FORMS OF SECURITIES

As said earlier in my post today I am discussing various forms of securities in which an individual can invest. Different forms of securities are:

1. STOCK: Stocks are the most popular security for investment. We know it as shares. They represent ownership in a specific company. These can be purchased through IPOs (Initial Public Offers) or through secondary market i.e. Stock market.

2. BONDS: I have discussed bonds in my earlier post also. They are the fixed income securities.

3.FUNDS: Funds becoming an interesting tool for everyone who is not interested in wasting time in investing in individual shares or bonds. Investment companies manage one or more funds i.e. Mutual Funds.

4. ETFs: Exchange Traded Funds, these are a new innovation. They are a basket of funds or bunch of funds like Mutual Funds, but can be bought or sold like an individual stock.

Any further clarification or information or suggestions are welcome. I will be discussing ETFs in detail in my next post.

Hope you are liking my posts.

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