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investments?

I'm really interested in starting an investment, but don't know anything about it. Can someone tell me the advantages of having an investment "locked in" for a long term. And what exactly is the difference of a stock and a bond. I know I should probably know that...but I am clueless. thank you.

Public Comments

1. I would strongly advice you to get some reputable company to manage your investments or take much more time learning these things on your own.
2. Don't feel bad because everyone had to start somewhere. A bond is a loan to a company. The company issues bonds and promises to pay back principal plus interest to the bondholder. A stock is part ownership of the business. When a company issues stock, it is selling part of itself. Bondholders are the first to get paid. The stockholders only get paid if there is enough money left over. www.financial-realities101.com offers a great deal of information for the novice investors.
3. I'd start with the Motley Fool website. It has everything you need to know to get started. They are very reputable and give a lot of information for free. Click on the link below for their "investing basics". Their Fool's School has a lot of information to get you on your way: http://www.fool.com/school/basics/basics.htm
4. stock: represents part ownership of a business, including it's assets, it's future earnings, and control of the company. bond: this is basically where you give a company money, and they are obligated to pay you interest payments, and a return of the bond's face value upon maturity. It doesn't represent actual ownership of a business, but it has first claim on the assets, in case the company goes bankrupt. Bonds are longer term investments, although not "locked in." You can usually sell them on the secondary market, just as you could a stock. However, if interest rates increase, the present value of your bond will decrease, and you will lose money if you try to sell it then. You can escape the interest rate risk by holding until maturity.
5. Hello first you need to determine what level of risk you are willing to take on. Next when you say long term are you referring to 15 or more years? Bonds are warrants on a company stock is similar in a sense but with stock you are a share owner in the company. I would suggest depending on the amount of capital that you have to invest, Real Estate Investment clubs and Forex Investment clubs for shorter term gains and for a longer term a mutual fund. If you write me at bankerbobretired@yahoo.com I will do my best to set you in the right direction till then have a good day Bob
6. Hi, here is a collection of informative articles about investing. a free online investing tutorial for you. http://www.investingtutorial.info/ good luck ! wish you make fortune from investing !
7. A stock is an ownership investment and a bond is a lending investment. Here is an expert from my free downloadable book: "Companies can raise capital in two general ways. They can issue stocks or bonds. We will talk about stocks in future chapters, but for now understand that a stock is ownership in a company. When you own part of a company, your investment's value is tied directly and proportionately to the performance of the company. This is because the stock's value is the predicted discounted dividends. But since the company makes no formal promises of any dividend payments, there are no guarantees. There is significant risk you will receive dividends in an amount less than you anticipated. In fact, there is a risk that the stock's price may drop to zero. Remember Enron? Bonds, on the other hand, are a lending investment and have more guarantees. The value of a bond is tied non-proportionately to the performance of the company. The company need only perform well enough to remain fiscally solvent (able to pay its debt). If the company does extremely well, you will not receive any income higher than the pre-determined interest payments. Bonds are more secure than stocks for two main reasons. First, because you know the stream of income (the interest and principal payments) in advance. Secondly, because bondholders are entitled to first dibs in the event of a company's bankruptcy. If a company goes under, its assets are liquidated and returned to the bondholders first. Stockholders get sloppy seconds, if any is left. All investments can be categorized as either an ownership investment or a lending investment. Thinking in these terms will help you simplify the massive world of investing. The most basic difference is in what term we use to describe their payments. Dividends are payments given to owners. Interest is payment given to lenders." If you want a free copy of my book, simply click on my profile and read my info, or email me. I am not a financial representative and I am not selling anything. I am merely a pharmacist with a passion for teaching people about retirement investing.
8. Won't take a couple of minutes to teach/explain to you what you want to know. It takes more than that. No one here will spend an afternoon writing an essay on the subject for you. Go visit your library and do some research on it. It's your money. Don't rely your money manager if you happen to hire one. If he losses your money, (or magic it) he always have handy reasons why. And you'll just take reason since you don't know anything.