20_Investments - Updated 01/09/2006 20 Investments Every...

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Updated 01/09/2006 20 Investments Every Investor Should Know http://www.investopedia.com/university/20_investments/ Thanks very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www.investopedia.com/contact.aspx Table of Contents 1) 20 Investments: Introduction 2) 20 Investments: American Depository Receipt (ADR) 3) 20 Investments: Annuity 4) 20 Investments: Closed-End Investment Fund 5) 20 Investments: Collectibles 6) 20 Investments: Common Stock 7) 20 Investments: Convertible Security 8) 20 Investments: Corporate Bond 9) 20 Investments: Futures Contract 10) 20 Investments: Life Insurance 11) 20 Investments: The Money Market 12) 20 Investments: Mortgage-Backed Securities 13) 20 Investments: Municipal Bond 14) 20 Investments: Mutual Funds 15) 20 Investments: Options (Stocks) 16) 20 Investments: Preferred Stock 17) 20 Investments: Real Estate and Property 18) 20 Investments: Real Estate Investment Trust (REIT) 19) 20 Investments: Treasuries 20) 20 Investments: Unit Trust (UIT) 21) 20 Investments: Zero-Coupon Securities Introduction Most people will find that their investment objectives change throughout their lives. Capital appreciation may be more important for the young investor, but once she enters her golden years, that same investor may place a greater emphasis on gaining income. Whatever your objective, knowing what investment options are out there is key. Furthermore, as most successful investors will tell you, diversification is king. A (Page 1 of 30) Copyright © 2006, Investopedia.com - All rights reserved.
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Investopedia.com – the resource for investing and personal finance education. This tutorial can be found at: http://www.investopedia.com/university/20_investments/ diversified portfolio not only reduces unwanted risk, but also contributes to a winning portfolio. And having a well-diversified portfolio doesn't necessarily mean just buying more than one stock; branching out into other areas of investment could be a viable alternative. Read on and learn about 20 investments that Investopedia feels every investor should know. American Depository Receipt (ADR) What Is It? Introduced to the financial markets in 1927, an American Depository Receipt (ADR) is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on U.S. stock markets just like regular stocks and are issued/sponsored in the U.S. by a bank or brokerage. ADRs were introduced in response to the difficulty of buying shares from other countries which trade at different prices and currency values. U.S. banks simply purchase a large lot of shares from a foreign company, bundle the shares into groups and reissue them on either the NYSE, AMEX or Nasdaq. The depository bank sets the ratio of U.S. ADRs per home country share. This ratio can be anything less than or greater than 1. For example, a ratio of 4:1 means that one ADR share represents four shares in the foreign company.
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20_Investments - Updated 01/09/2006 20 Investments Every...

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