Investing is not a one-size-fits-all. With a wide range of investment products available, it’s important to understand the various types of assets you can include in your portfolio. From traditional investments like stocks and bonds to emerging products, diversifying your investments is key to managing risk and achieving your financial goals.
Investment Products
This FINRA resource provides an overview of the wide landscape of investment products, including stocks, bonds, mutual funds, and more. It explains the types of investments available, how they work, and the associated risks. Whether you’re a beginner or an experienced investor, this guide is a great starting point to explore the different options and build a diversified portfolio.
Stocks
Stocks, or equities, represent ownership in a company. This FINRA resource on stocks covers the basics, including how stocks work, the different types available, and how they can generate returns through dividends and capital gains. It also explains the risks associated with stock investing, especially the volatility that can lead to price fluctuations. For those new to investing, the resource suggests considering stock funds as a way to diversify investments rather than picking individual stocks.
Bonds
Bonds are debt securities that provide a more stable income stream compared to stocks. This FINRA resource on bonds explains how bonds work, the types of bonds available, and how they can help diversify your portfolio. Bonds are generally considered less volatile than stocks, and they can offer a way to preserve capital while generating income. However, bonds are not without risk. Interest rate fluctuations can affect bond prices, and some bonds may carry higher default risks.
