How to Invest in Stock

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How to Invest in Stock , The Five Types of Assets You Might Own
Generally, there are five types of assets the average investor is likely to own in their lifetime:

1. Common stocks , ownership of businesses
2. Preferred stocks , special types of stock that often pay high dividends but have limited upside.
3. Bonds – corporate bonds, municipal bonds, savings bonds, U.S. government treasuries, etc.
4. Money markets , highly liquid funds that are designed to protect your purchasing power, considered to be a cash equivalent
5. Real estate investment trusts or REITs – a special type of company designation that allows no taxation at the company level provided more than 90% of earnings are paid out to the shareholders. The assets are often invested in a variety of real estate projects and properties.
6. Mutual funds including exchange-traded funds, index funds, and actively managed funds.