What are securities?

Securities are investments issued by firms, governments, or other organizations that represent a financial claim on the resources of the issuer.

What's the most common type of security?

Stocks and bonds, but more types like stock options are available as well. One of the benefits of investing in securities is that they often have a high degree of liquidity.

Liquidity means that you can sell securities and convert them into cash quickly without incurring large transaction costs and without having an adverse impact on the security’s price.

Stocks issued by large companies, for example, tend to be highly liquid, allowing investors trade billions of shares of stock each day in the markets all over the world.

What is a property investment?

Property consists of investments in real property or tangible personal property. It is important to familiarize yourself with the difference between the two:

• Real property refers to land, buildings, and that which is permanently affixed to the land.
• Tangible personal property includes items such as gold, artwork, antiques, and other collectibles.

*In most cases, property is not as easy to buy or sell as are securities, making that property a relatively illiquid type of investment. For those looking for investments that are easily sold, then property in not for you. Property in most cases should be invested in to build your assets for long term.

Investors who want to sell a building or a painting may have to hire (and compensate) a real estate agent or an art dealer to locate a buyer, and it may take weeks or months to sell the property.

What would you invest in? Enter your answer in the comment section below