Be aware that the volatility of the overall market can cause even attractive stocks to drop in price. There are tow kinds of liquidity risk facing investors. The second risk factor is that you may be forced to sell at an inopportune time. You can reduce liquidity risk by investing a portion of your portfolio in cash, lessening the chance that you must sell other investments in bad markets. B onds . . .
Bonds are fixed-income investments and normally pay interest on a regular basis.
Corporate bonds are issued by a corporation. Municipal bonds are issued by cities and towns. Treasury securities are issued by the federal government. When you invest in bonds, you will receive the par value of the bond and interest after a pre-determined period of time. Keep in mind that bonds do not resist inflation.