Investment

Stocks: 

• shares in ownership of a company
• riskful

Mutual Funds:

• investment program funded by shareholders
• trades diversified holdings
• professionally managed

Bonds:

• debt security
• similar to an I.O.U.

Risk of Investment

Whats the difference between saving accounts and investment?

• saving accounts are riskfree, investments are not
• you always gain a percentage of money on your saving account
• you can make a lot of money on your investment or lose all of it

Does time play a role in investments?

• bigger chance of making money in long-term investments
• conditions affect time of investment rates

3 Things about Investing:

1. no guarantees + no perfect way to invest
2. understand how your investment works
3. make a plan to determine your needs + goals

Bonds bounce back