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Building a portfolio

Stock certificates certify how much of a corporation you own.

Stock Certificate

Kiplinger's guide to investing success : making money today in stocks, bonds, mutual funds, and real estate
from the editors of Kiplinger's Personal Finance.
Chicago, IL : Kaplan Pub., c2006.
Investing can often be like riding a roller coaster-your portfolio will likely experience euphoric gains and nail-biting losses. With choices ranging from stocks and bonds to mutual funds and real estate, the need for sound financial advice has never been greater. The updated Kiplinger's Guide to Investing Success, from the editors of Kiplinger's Personal Finance magazine, gives you the knowledge and perspective you need to reach your investing goals-from how to define those goals to tips for creating a diversified portfolio with the most effective investment vehicles to help you reach them.
     
Stock market knowledge for all ages : answering questions about stocks, bonds, and mutual funds
Susie Vaccaro Hardeman.
Berkeley, Calif. : Ten Speed, c2004.
Clear Answers To Basic Questions For Any First-Time Investor, In A Colorful, Fun-To-Read Format At An Affordable Price.
     
Everyone's money book on stocks, bonds, and mutual funds
Jordan Goodman.
Chicago : Dearborn Trade Pub., c2002.
Did your nest egg crack? "America's Money Answers Man" Jordan Goodman offers investing advice for today's troubled market. Many investors have watched as their portfolios "downsized," so to speak, over the past few years. But, there are still pockets of opportunity in the stock market today. Finding it is simply a matter of discovering those great companies. In Everyone's Money Book on Stocks, Bonds, and Mutual Funds, finance expert Jordan Goodman shows investors how the benefits of long term investing opportunities far outweigh any initial losses.
     
The small investor : a beginners guide to stocks, bonds, and mutual funds
Jim Gard.
Berkeley : Ten Speed Press, c2002.
Includes bibliographical references and index.
     

Investing is putting your money to work for you. Does financial security mean that you need to save for your children's future education, a vacation, or even retirement? Are you looking for short or long term investments? There are three broad types of investments from which you can choose to build a portfolio.

Stocks are an ownership share in a corporation. As a shareholder you make a profit when the company makes a profit.  As part owner of a company you are entitled to vote on important issues like should there be more stock issued or who should be elected to the board of directors.

Bonds are a loan that pays interest over a period of time. They help to raise funds for schools, repair roads and build factories. As a bondholder you will receive a steady income over a fixed term. When the bond matures the principal amount is repaid.

Types of Mutual Funds

Stock funds also called equity funds, invest in stocks

Bond funds invest in government or coporate bonds

Money Market funds make short term investments to keep their share value fixed at $1

Mutual Funds are a collection of stocks and bonds. They are purchased by a company that manages the funds with investment objectives. A mutual fund will include between fifty to one hundred different stocks, bonds and other options. You have easy access to your money that can be converted to cash quickly.

Before making any buying or selling decision research the company profile so that you can have a perspective on your investment.

Article by: St. Louis Public Library staff