stocks
either individual ones or funds:
Equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises. It also sometimes refers to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup (a company being created or newly created). When the investment is in infant companies, it is referred to as venture capital investing and is generally understood to be higher risk than investment in listed going-concern situations.
Direct holdings and pooled funds
The equities held by private individuals are often held via mutual funds or other forms of pooled investment vehicle, many of which have quoted prices that are listed in financial newspapers or magazines; the mutual funds are typically managed by prominent fund management firms (e.g. Fidelity or Vanguard). Such holdings allow individual investors to obtain the diversification of the fund(s) and to obtain the skill of the professional fund managers in charge of the fund(s). An alternative usually employed by large private investors and institutions (e.g. large pension funds) is to hold shares directly;in the institutional environment many clients that own portfolios have what are called segregated funds as opposed to, or in addition to, the pooled e.g. mutual fund alternative.
Pros and Cons
The major advantages of investing in pooled funds are access to professional investor skills and obtaining the diversification of the holdings within the fund. The investor also receives the services associated with the fund e.g. regular written reports and dividend payments (where applicable). The major disadvantages of investing in pooled funds are the fees payable to the managers of the fund (usually payable on entry and annually and sometimes on exit) and the diversification of the fund that may or may not be appropriate given the investors circumstances.
It is possible to over-diversify. If an investor holds several funds, then the risks and structure of his overall position is an amalgam of the holdings in all the different funds and arguably the investors holdings successively approximate to an index or market risk.
The costs or fees paid to the professional fund management organisation need to be monitored carefully. In the worst cases the costs (e.g. fees and other costs that may be less obvious hidden fees within the workings of the investing organisation) are large relative to the dividend income payable on the stock market and to the total post-tax return that the investor can anticipate in an average year
2006-08-07 15:30:13
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answer #1
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answered by TruthIsRelative 4
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Depends on what your investment philosophy is. While I think real estate is still a little expensive, in the long term, it is still a "sure thing", since they aren't making any more.
In the short term, I like oil, because I don't see demand falling unless China has some catestrophic collapse and India is destroyed by nukes from Pakistan and the oil fields in Siberia and Alaska turn into little Saudi Arabias, and it seems fairly likely terrorists are going to successfully target these assets in the short term, and the market is very sensitive to these things. That said, you have to be very rich to be able to afford to "stay in" the commodities game and ride out the dips from week to week.
That said, find some nice mutual funds, then, buy the stocks the mutual fund invests in. NOT the fund, because the fees are a scam invented by brokers.
2006-08-07 15:38:09
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answer #2
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answered by Jimee77 4
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Coffins, tombstones, mortuaries, etc. lots of people die daily and they all need someplace to be buried and things to be buried in. Forget about investing in bonds, stocks, and all that jazz, invest in something that has practical value and will stay consitent. The stock market and real estate market will continue to fluctuated but the death market will still keep producing a profit and will probably increase with the increase of population.
2006-08-09 20:49:28
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answer #3
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answered by phyzun 2
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Thoroughbred Race Horses!
dcjmsmith
2006-08-07 15:32:49
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answer #4
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answered by donsluck 1
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Commodoties futures such as oil, gold, and silver. They are pricey but aren't going to get cheaper.
Also, corn futures may be a good pick, as the increased awareness of ethanol based fuels as alternative sources grows that sector of the economy.
And of course, real estate. However, try to aquire open lots and land, as opposed to housing, as the housing boom seems to be slowing or even about to burst. Land will still grow or maintain value, but the value of what is on that landis going to drop.
2006-08-07 15:33:17
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answer #5
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answered by But why is the rum always gone? 6
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Land, no matter what happens in the world the need for land is forever and will always be so.
2006-08-07 15:32:00
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answer #6
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answered by Super Sean 3
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investing in more than one thing
2006-08-07 15:32:14
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answer #7
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answered by MatrimonialHeadMask 2
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Put the money in your pillow case. Hide it under your bed.
2006-08-07 15:31:54
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answer #8
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answered by I-o-d-tiger 6
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used computer monitors, baseball cards, and future Mel Gibson movies.
2006-08-07 15:33:19
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answer #9
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answered by Hathor 4
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IPO's are always a good bet. Might not be a winning bet, but a good one.
2006-08-07 15:32:18
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answer #10
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answered by Jeff M 5
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