Following is a brief summary of the most common instruments for investing. Issuers borrow money for a short period of time and pay interest on the amount borrowed. If a company is profitable, shareholders may receive a portion of the profits as dividends. Market value of stock may grow if investors believe prospects for future earnings are good. A Mutual Fund is a financial arrangement by which money is collected from many people and invested.
Mutual funds are available to the general public.
In fact, many daily newspapers report on investment results of mutual funds. Investment Categories Fixed Income Offers guarantee of principal plus a minimum guaranteed interest rate. May invest in money markets, T-bills, CDs, corporate and government bonds. Balanced Diversified investments targeted to specific investment criteria. May combine equities, fixed income investments, cash, or money market securities.