Investment Vehicles: What Are They and What Are the Risks?

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According to the 2019 Schwab Modern Wealth Survey, Americans believe someone to be “wealthy” if they have at least $2.3 million in net worth.

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What Is an Investment Vehicle?

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What Are Stocks?

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What Are Bonds?

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Commodities are assets or goods that can be bought and sold. Investors will commonly purchase commodities to either hedge their positions or as speculation.

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What Are Mutual Funds?

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Exchange-traded funds (ETFs) are similar to mutual funds, in that they are a pool of funds from many investors.

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What Is Cash?

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Investment Vehicles: What Are They and What Are the Risks?

According to the 2019 Schwab Modern Wealth Survey, Americans believe someone to be “wealthy” if they have at least $2.3 million in net worth.

What Is an Investment Vehicle?

In order to put your money towards an investment, you will need a “vehicle,” or a means of getting it there. Investment vehicles are just that—they give investors the ability to invest and watch their money grow.

What Are Stocks?

The first investment vehicle, stocks, is a form of equity. Stocks represent ownership of a particular company. Investors can buy and sell shares of stock on an exchange such as the New York Stock Exchange (NYSE) or Nasdaq.

What Are Bonds?

Stocks and bonds often get talked about together, but are really two completely different investment vehicles.

Commodities are assets or goods that can be bought and sold. Investors will commonly purchase commodities to either hedge their positions or as speculation.

What Are Commodities?

What Are Mutual Funds?

Mutual funds allow investors to pool their money together, and then it is managed by a professional money manager.

Exchange-traded funds (ETFs) are similar to mutual funds, in that they are a pool of funds from many investors.

What Are ETFs?

What Is Cash?

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Cash and cash equivalents can also be considered an investment because of the interest accrued. Cash equivalents can include savings accounts and other bank accounts.

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