Assignment on what is investment type of investment
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An investment is defined as acquiring an asset with the main aim of generating income in the future. It can also be called the purchase of goods that are not consumed today but are used in creation of wealth in the future.
Examples of investment include stocks, bonds, property, land etc.
Types of investment include:
1. Stocks: By buying share of stocks the stock holder has right on the company dividends however they do not own the assets.
2. Bonds: These are known as the debt instruments where an investor loans the money to a company or agency. Bonds are issued by corporations, federal government plus many states, municipalities and governmental agencies.
3. Mutual funds: A mutual fund is a pooled investment managed by an investment manager. These investments can be in stocks, bonds etc.
4. Exchange traded funds: ETFs are similar to mutual funds in many respects, but are traded on the stock exchange during the trading day just like shares of stock.