The stock market offers a variety of investment types, each catering to different goals and risk tolerances.
Common stocks allow you to own a piece of a company, giving you potential dividends and voting rights.
Preferred stocks are another option. They typically provide fixed dividends but lack the same voting power as common stocks. These can be appealing for those seeking steady income.
Bonds represent loans made to corporations or governments. While generally considered safer than stocks, they often offer lower returns.
Mutual funds pool money from multiple investors to buy a diverse array of securities. This diversification helps spread risk while providing exposure to various sectors without requiring extensive research.
Exchange-traded funds (ETFs) operate similarly but trade like individual stocks on exchanges. Their flexibility allows investors to easily enter or exit positions throughout the trading day, making them an attractive choice for many traders looking to make money in the market.