Stocks, bonds, and indicies are traded in many ways and have various potentials. Caution must be used in any trading arena but the understanding one can obtain can make each arena a great source of money.
Stocks
Stocks are from publicly and privately traded companies. You buy stocks and become a shareholder in the company. There are different types of stocks like treasury and common stocks, as well as buying a stock or using future predicted growth for the purchase called options trading. As a portfolio with stocks, indicies, and bonds occur your portfolio may become a mutual fund and when Hedgefunding you are typically pitting one stock or portfolio against another.
Indicies
Indicies are a group of stocks that meet certain requirements, like a certain level of profit and being within a common industry. Here especially when trading caution needs to be used because any movement in the market can cause you to wipe out a trading account fast.
Bonds
Bonds can be a request for a loan by a company from within an exchange like for R&D. These types of bonds will have information about what the bond is for and the goal of the project the bond is funding. The other type of bond is sometimes referred to as Treasury Bonds or T-Bills.
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