Introduction

Did you know that you probably are already an investor? If you have a savings account you basically are one and have an investment in your name. An investment, in its basic form, is any asset into which funds can be placed with the expectation that it will generate positive income and/or increase its value. A collection of different investments is called a portfolio. When you start to invest in more than one investment you create a portfolio.

In the investing world there are rewards, or otherwise known as returns. These returns come in two basic forms: income and increased value.

For example, money that is invested in a savings account provides income in the form of periodic interest payments. A share of common stock may also provide income (in the form of dividends). Investors mainly buy stock because they expect its price to rise. That is, common stock offers both income and the chance of an increased value.


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