Yusra3
Banned
Liquid investments are a great way to invest in the stock market, but they're not for everyone. Here's a look at four types of liquid investments and how they work:
1) U.S. Treasuries
U.S. Treasuries are the most common type of liquid investment and they're very safe. You can get them through Treasury Direct or through a broker like Fidelity or Vanguard, where you can buy them directly or have them sent electronically to your account. You'll know when you've received your bonds because they'll arrive in a paper wrapper with your name on it and a serial number, as well as instructions for cashing them in at any U.S. Federal Reserve Bank Account.
2) Corporate Bonds
Corporate bonds are another form of liquid investment that's easy to understand, but there are some important things to know about this kind of bond before you buy one: They're issued by companies, not governments; the interest rate is based on the creditworthiness of the issuer rather than being fixed; and they typically mature within five years from issue date (although sometimes they can last longer).
3. Stocks
These are shares of a company. They are often bought and sold on stock exchanges, but they can also be purchased directly from a broker or over the phone with a discount broker.
4. Bonds
These are debt instruments, such as government bonds, corporate bonds, and municipal bonds. They are sold at a discount to their face value and then paid back to investors over time with interest payments.
1) U.S. Treasuries
U.S. Treasuries are the most common type of liquid investment and they're very safe. You can get them through Treasury Direct or through a broker like Fidelity or Vanguard, where you can buy them directly or have them sent electronically to your account. You'll know when you've received your bonds because they'll arrive in a paper wrapper with your name on it and a serial number, as well as instructions for cashing them in at any U.S. Federal Reserve Bank Account.
2) Corporate Bonds
Corporate bonds are another form of liquid investment that's easy to understand, but there are some important things to know about this kind of bond before you buy one: They're issued by companies, not governments; the interest rate is based on the creditworthiness of the issuer rather than being fixed; and they typically mature within five years from issue date (although sometimes they can last longer).
3. Stocks
These are shares of a company. They are often bought and sold on stock exchanges, but they can also be purchased directly from a broker or over the phone with a discount broker.
4. Bonds
These are debt instruments, such as government bonds, corporate bonds, and municipal bonds. They are sold at a discount to their face value and then paid back to investors over time with interest payments.