Buying and Selling Stocks
Investors can buy and sell stocks through brokerage accounts. Stock orders can be placed as market orders or limit orders.
Stock Market Indexes
Stock market indexes, such as the S&P 500 and Dow Jones Industrial Average, track the performance of groups of stocks and provide a benchmark for the overall market.
Bonds and Fixed-Income Investments
Bonds are debt securities issued by governments or corporations to raise capital. Bondholders receive periodic interest payments and the return of the principal upon maturity.
Types of Bonds
There are various types of bonds, including government bonds, corporate bonds, municipal bonds, and Treasury bonds, each with its own risk and return characteristics.
Credit rating agencies assess the creditworthiness of bonds and assign ratings that indicate their risk level. Higher-rated bonds are considered lower risk.
Mutual Funds and ETFs
What Are Mutual Funds?
Mutual funds pool money from multiple investors to invest in a diversified portfolio of assets, such as stocks and bonds. They offer diversification and professional management.
Exchange-Traded Funds (ETFs)
ETFs are similar to mutual funds but trade on stock exchanges like individual stocks. They provide flexibility and liquidity.
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