Classification of investments

Classification of investments

Investments can be divided into different forms. Here are six classification of investment.

Securities against property

Titles are linked to the business or other assets. Options, stocks and bonds are examples of names. During this time, the property can be as real or tangible personal property. Property references to land, construction and real estate all the improvements to the ground. Personal property including antiques, gold and other precious figurine.

Direct and indirect

Direct investment directly related to the acquisition of securities or property. For example, purchase of bonds, shares and real estate for profit or to preserve its values. In contrast, indirect investment refers to investment in the portfolio. Purchase of investment funds can be considered as indirect investments you not directly invest in a security company.

Derived from the debt and equity

It intends to invest their capital in credit debt grow. You can expect your capital plus interest you will be returned after payment. Purchasing obligations is a clear example. equity refers to the possession of property or business. Purchase of common shares are the most common type of justice. Derivative is very different from the debt and equity. Value derived from the underlying asset. You can buy or sell a security or an asset at a price determined in a certain period of time. An example of a derivative is an option.

Vs low-risk, high risk

Potential higher earnings of investment vehicle, plu risk and vice versa. That is why a link is a low-risk investment, while stocks tend to be high risk.

Short – and long-term

Short term investments, usually mature in one year. Long-term investments, on the other hand, for the longest period of maturity or even no expiry.

Domestic and foreign

Domestic investment is to invest their capital in their country, using technology, foreign investment has been made more easy for people who want to invest abroad through the negotiation of the Internet.

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