A stock does not have a fixed, objective worth. At any moment, it is only as valuable as people perceive it to be. Stocks may be either preferred or common. Given a long-term horizon, some of the risks inherent in stock investing can be reduced. Treasury Bills Short-term U.S. government securities that have maturities of less than one year that are sold at weekly auctions at a discount and are redeemed at face value.
Risk is low.
Treasury Bonds Long-term U.S. government securities that have maturities between seven and 30 years. Risk with these investments is low to moderate. Treasury Notes Intermediate-term U.S. government securities that have maturities between one and seven years. Risk is slightly higher than Treasury bills and lower than Treasury bonds. U.S. Government Agency Securities Securities issued by government agencies rather than issued directly by the U.S. Treasury.