The second class in the series, we we explore the first group of financial instruments - known as asset classes - that you as an individual can invest in.
Investing #102 - Asset Classes: Bonds, Money Market, Stocks
Bonds - are a type of I.O.U. You lend money to a company or government, with them promising to pay back the money along with interest along certain points in time.
Money Market - short term loans (typically around 3 months) made by banks and financial institutions to each other. These loans also pay interest, and are available to you as an investor to invest in.
Stocks - also known as shares, these give you a stake, or equity, in a company. Your stake in the company entitles you to receive an income in the form of dividends; to particpate in company decisions through voting; and to benefit from the share price rising (known as capital appreciation)