A Financial Guide - Just for Teens - page 16

These are some of the most popular ways people invest their money:
BO~:
you can lend money to the government or companies at a
fixed rate of interest. When they pay you back at a stipulated date, you
get back more than you have lent.
STOCKS
or
SHARES:
you can purchase a stock or share, as each stock
or share represents your part ownership in the company. For example,
in Barbados, you can look in the local newspaper to see the companies
that are traded on the local Stock Exchange.
If
the price of the stock or
share goes up, your investment increases.
If
the price goes down, your
investment decreases. People who purchase stocks or shares take their
time to look at their money over a certain period.
An
expert investor or
stock broker can advise you when is the right time to sell or buy stocks.
MUTUAL
FU~:
this is an investment that is made up of a pool of
funds collected from many investors to invest in securities much like
stocks and bonds. The collective wealth of the group depends on the
market prices at the time.
If
you need to know more about these types of investments, talk to a
person in the financial industry. There are many people whose job it is
to explain all these elements to you!
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