Investment clubs are groups of investors who pool in money to make joint investments in stocks and bonds. An investing club convenes meetings regularly for the exchange of investing ideas among like-minded people and to enhance knowledge to foster better decision making. These investment clubs also help to boost the buying power of their members.
Investment clubs can be categorized into the following:
Private equity is a particular form of asset that deals with equity securities of operating enterprises, which do not come under the list of companies traded publicly on stock exchanges.
Private equity adds to the operational competency of business organizations. It encourages private investment in business ventures. With private equity, it becomes easier for business organizations to focus on developing new products. Private equity also helps in designing new business strategies.
Companies and governments issue financial instruments to raise short term and long term funds so as to meet their immediate requirements. The financial instruments comprise stocks and bonds, which serve as investment opportunities that can earn high returns. Before opting for an investment opportunity, it is important to do a comparative analysis and identify the segments that are risky but yielding the maximum returns. You can also seek professional expertise from an investment advisor to explore various investment opportunities.
Investment securities refer to certificates or documents that indicate that you have an interest in a business or have lentmoney to a company or a government entity. Investment securities are of two types, namely equity securities (such as commonstocks) and debt securities (such as bank notes, Treasury bills and bonds). An entity or corporation that issues securities is known as the issuer.
Here is a list of the main types of investment securities:
A commodity is an article of commerce or trade that is in demand and sold by various suppliers without any qualitative differentiation. Generally, commodities are raw materials whose prices are based on market demand and supply. Commodities are of two types, hard and soft. Tea, coffee, sugar, sisal, cocoa, corn soya and pork bellies come under the category of soft commodities. Some examples of hard commodities are metals, such as aluminum and copper.
