Investment Basics: The Fundamentals
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You hear of many different types of investments, from mutual funds to unit trusts. But they are all derived from three basic asset categories:

* Cash
The great advantage of cash and cash equivalents is that funds are readily accessible, or liquid. Cash equivalents also maintain a high degree of liquidity, but allow you the potential to earn interest, returns and/or dividends. Certificates of deposit (CDs) and Treasury bills are two of the most common and widely used cash equivalents.
* Bonds
Bonds, meanwhile, are debt instruments issued by a company or government to finance a certain aspect of its operation. When you invest in bonds, you are essentially lending money to the bond issuer, entitling you to receive interest on that loan, and a repayment of principal when the bond matures. Bonds come in a number of incarnations, including U.S. Treasury bonds, municipal bonds and corporate bonds.
* Stocks......

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Title: Investment Basics: The Fundamentals
Approximate Word Count: 2295
Approximate Pages: 10 (250 words per double-spaced page)

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