Investing 101


What is Investing?

Investing is the process of selecting investments and we define anĀ investmentĀ operation as one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.
When one makes an investment he is betting on the future earning potential of the company or underlying “index” such as the Dow Jones or S&P 500 which are collections of companies.

Types of Investments

The most common forms of investments are bonds or stocks. Bonds represents ownership of debt and are paid a certain yield until full repayment of that debt. They may have special terms or conversions into equity. If a person defaults on a bond there is recourse to assets.
Stocks are investments in equity of a company or an ownership in that company. If you are a shareholder you own a piece no matter how tiny it may be. If you own a share in a mutual fund you can pool your resources with others to own shares in more companies and thusly diversify.
For the passive and defensive investor this can represent a great deal.

How to Invest?

Learning How to Invest

At Invest Correctly we have a variety of articles to get you the path depending upon your investing goals whether you be someone that wants to learn how to value invest or simply pick the best funds for your retirement. Investing and how to compound comes in many different shapes and funds.