Learn How to Build Wealth Volume 2–Paper Asset Classes
There are three main paper asset classes; equities (stocks), fixed income (bonds) and cash accounts (savings account). The investments within each paper asset class generally have certain features in common.
When investing in equities the common feature is ownership. By purchasing stocks we have ownership interest in a company. Essentially when buying shares in a business we become a business owner.
Fixed income class assets are investments where the investors is lending money. The two most common form of fixed income investments are bonds and G.I.C.’s (Guarantee Investment Certificates).
Cash accounts are generally all short term investment vehicles. They are the largest asset class.
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