Invest

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Investing is the act of putting your money somewhere with the expectation that you will get it back with maximum growth added to it.

There are two main types of securities. "Security" is just the technical name for an investment or a negotiable financial instrument. The first is a debt security. Bonds are common debt securities. With this you are lending money with the expectation of getting it back with interest.

The second, an equity security, is ownership. When you purchase stock you are an ower of that company and you are entitled to its assets and earnings, albeit only a fraction of the company.

Other types of investments include mutual funds, real estate, commodities, foreign currency, savings accounts, etc.

It is important for all investors to find the right balance, for example older investors that are close to retirrement or who are already retired should have the least amount of risk among investors to prevent losing their nest egg which supporting them now or very soon. Younger investors that are years away from retirement have lots of time to earn back losses and can afford to shoot for more earnings.

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