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There are three main types of investments: Ownership, Lending, or cash. Ownership investments are the most volatile and profitable class of investment. Such as owning stock meaning owning a portion of a company. It may be a minuscule stake, but it's ownership. More broadly speaking, all traded securities, from futures to currency swaps, are ownership investments. Investors purchase them in order to share in the profits, or because they will increase in value, or both. Lending money is a category of investing. The risks generally are lower than for many investments and, consequently, the rewards are relatively modest. A bond issued by a company or a government will pay a set amount of interest over a set period of time. The only real risk is that the company or government will go bankrupt, in which case the bondholder may get little or none of the investment back. A regular savings account is an investment. The investor is essentially lending money to the bank. The bank will pay interest to the account holder and will earn its profit by loaning out the rest of the money to businesses at a higher rate of interest. These are investments are "as good as cash," which means that they can be converted back to cash easily and quickly. Money market funds are more liquid than other investments, meaning you can write checks out of money market accounts just as you would with a checking account. Although, once you start writing checks on it you've erased much of its value as an investment.
Answer:
There are three fundamental sorts of speculations: Ownership, Lending, or money. Possession ventures are the most unstable and beneficial class of speculation. For example, claiming stock significance possessing a part of an organization. It very well might be a tiny stake, however it's possession. All the more as a general rule, exchanged protections, from prospects to money trades, are possession ventures. Financial backers buy them to partake in the benefits, or in light of the fact that they will increment in esteem, or both. Loaning cash is a class of money management. The dangers by and large are lower than for some speculations and, thus, the prizes are generally unobtrusive. A bond gave by an organization or an administration will pay a limited measure of interest throughout a set timeframe. The main genuine gamble is that the organization or government will fail, in which case the bondholder might get nearly nothing or none of the venture back. A normal bank account is a venture. The financial backer is basically loaning cash to the bank. The bank will pay revenue to the record holder and will procure its benefit by crediting out the remainder of the cash to organizations at a higher pace of revenue. These are speculations are "comparable to cash," and that implies that they can be switched back over completely to cash effectively and rapidly. Currency market reserves are more fluid than different speculations, meaning you can work leaves currency market accounts similarly as you would with a financial records. Albeit, when you begin composing keeps an eye on it you've deleted a lot of its worth as a venture.
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