As you learned in school, start with your ABCs. While the choices are few, the way you allocate your money will significantly impact your performance. You can reduce your risk if your investments are well diversified within each category.
S tocks .
When you buy stocks, also known as equities, you become part owner of a company. Therefore, you benefit if the company succeeds. When company profits rise, the stock price generally rises. Before purchasing a company's stock, carefully examine its annual report, which include valuable information about corporate financial performance. Be sure to pay close attention to the following sections of an annual report.