Like your investment account at a brokerage house, it can contain a wide variety of types of investments. Here are some of the most popular types of investments. A time deposit giving the bank the right to hold your money for a fixed period of time. In return, the bank gives you a higher rate of interest than you would normally get in a savings or money market account, where you may withdraw your money at any time. With a CD, there are generally stiff penalties for early withdrawal.
Brokers trade stocks in the stock market.
Essentially a loan to a corporation or government entity which pays you interest. They are exceedingly popular because they allow you to diversify your investment. They are professionally managed, liquid, and convenient for most investors. This is a mutual fund that invests in U.S Treasury Bills and Notes, large certificates of deposit, commercial paper and bankers' acceptances. Its goal is to protect your capital while showing a modest return.