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.
Read →