Investments: In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. A lot of people are investing without realizing it. They often says “I don’t understand the stock market, I can’t invest in it”. They clearly don’t understand it but yet their 401K and RothIRA is part of the market.
When it comes to investing it’s a risk most of us take and to be honest with you I don’t think company like Apple, Consolidated Edison or Boeing will go anywhere anytime soon. Plus their dividend is really good.
Dividends represent a distribution of corporate earnings to company shareholders and usually take place in one of two forms: cash or stock. Most cash dividends are paid on a quarterly basis.
Not everyone makes money in the market, there are many different type of investors.
Short-term investments: A short-term investment, also called a temporary investment or marketable security, is a debt or equity security that is expected to be sold or converted into cash in the next 3 to 12 months.
Long-term investments: are assets that are held for more than one year or accounting period and are used to create other income outside of the normal operations of the company. And there are trader: they buy stocks and sell them in a short period of time for short-term profits.
On the stock front, consider diversifying across regions, sectors, investment styles—value and growth—and size—small, mid- and large-cap stocks. On the bond front, consider diversifying across different credit qualities, maturities, and issuers.
All my investments are long-term. I’m in it for the dividend and to watch my stocks grow in value.
“Like Warren Buffet says buy low and hold”.