Sunday, September 7, 2008

Long term Investment

Long-Term Investment

Treasury Bills

This comes in-block and is used by government to help the public and to

prevent too much money in circulation. The minimum depends on the government but

is mostly in multiples of 10,000.

Bonds: Bonds come in various forms.

They're known as "fixed-income" securities because the amount of income

the bond generates each year is "fixed," or set, when the bond is sold.

From an investor's point of view, bonds are very similar to Certificate of Deposits, except

that they are issued by the government or by corporations instead of

banks.

Stock: Stocks are a way for individuals to own parts of businesses. A

share or stock represents a proportional share of ownership in a

company. As the value of the company changes, the value of the share in

that company rises and falls.

They can be Ordinary Shares or Preference Shares. Debenture loan stocks

are also available in some companies.

Choosing long term investment means an Investor is comfortable enough to overlook

fluctuations to his investment i.e after a series of short term investments, resources

are now pooled together to obtain a longer term investment portfolio.

This investment option means that you cannot pull out your investment capital on

impulse (at least not as easily as going to the bank to withdraw your savings)!.

An Investor in the long term must be more versatile. Monitor your investment by watching

stock indices, obtaining an analysis of the various companies you have invested in.






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