Most types of savings bonds do not pay periodic interest but rather accumulate value over time. The possibility of an adverse interest rate move is a major risk that long-term bond investors face. Approximately 75 percent of U.S. households own stock directly. Stock prices generally fluctuate much less than bond prices. Preferred stock is not very marketable, but it is generally liquid.
Warrants are generally exercisable for relatively long periods, such as several years.
Calls are sold by the company whose stock underlies the call. Mutual funds are classified as closed-end investment companies, which neither issue new shares nor redeem outstanding shares. Futures contracts are derivatives whose values are derived from the values of the underlying assets on which the contracts are based. Commissions on commodity trades are a large portion of the potential gains or losses.