Commodity
A basic raw material that's essentially the same regardless of who produces it, gold, oil, wheat, copper, natural gas. Traded on global markets in standard contracts. Doesn't produce cashflow (gold doesn't pay dividends), so commodity returns come entirely from price changes. Often used as a hedge against inflation.
Gold has historically held its purchasing power over very long periods, but with high volatility along the way.
What you own
Stock
A share of ownership in a company. You profit if the company grows; you lose if it falters.
Read →Bond
A loan you make to a government or company. They pay you interest, then return your money.
Read →ETF
A basket of many investments, often hundreds, bought in a single transaction.
Read →Index
A representative basket of a market, like the S&P 500 or the IBEX 35.
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