An initial investment is the use of capital, goods and services with the intention of obtaining a number of benefits over them. Every investment carries a term and a risk.

There are two types of investments: the bond is an investment in which the benefit is known in advance, but were not in equities. The debt risk is minimal and the equity offers potentially greater benefit.

Savings Account

There are many different investment opportunities in the financial system. One of the best known and most common are the savings accounts.

It is a form of investment in fixed income, which consists of depositing a financial amount in a financial institution in order to increase it. This system provides a low cost and is not normally subject to a deadline.

Fuel fixed term

Form of investment in fixed income, in which a financial institution offers a return in exchange for the customer maintains an amount in that entity for a period expected earlier.

If you want to deposit money with a fixed before the end of the period, the customer will have to pay a fee for early withdrawal. This type of investment offers a low profitability.

PTo make a time deposit must be taken into account: the minimum investment required by the financial institution, the term, the interest rate, the frequency of payments and commissions cancel early.

Fund investment

It is a system of investment in equities, which consists of group savings from different stakeholders for subsequent investment. All members involved are co-owners of the fund. This product provides an average return.

The management companies are those that are responsible for selecting and conducting investment fund. They tend to be on financial products such as stocks, bonds or letters. You can also invest in non-financial products such as artwork or property.

Investment funds are open systems, ie at any time a participant may sell or liquidate its investment and usually incorporating a new member is allowed at all times.

Public debt

It is a system of investment in fixed income securities based on the purchase of fixed income securities that relate to debt that the State has with third parties. These investments offer a low profitability and are subject to a time limit.

This operation can be done in a direct way, through the Bank of Spain or indirectly, through another financial institution. It is also possible to invest in government bonds at an auction.

The State provides various forms of investment in government bonds: treasury bills, notes and bonds of the State among others. They are low risk investments since, except in exceptional cases, States generally comply with its obligations.

Stock exchange

It is a financing instrument for companies that sell their shares, and a system of investment in equity securities for savers, namely those who acquired.

The purchase of shares on the stock market involves risk. Depending on the price, ie the price reached by the shares at a given time, the profitability varies they generate. Potentially investment on the stock exchange are more profitable.

On the other hand, shareholders in most cases receive dividends. They are supplementary income that the company distributes periodically between who owns their shares for profits. The delivery of dividends usually quarterly, semiannually or annually.

Remarks

In many cases, financial institutions promoting pension schemes as a method of investment. Could be considered as such, but rather a method of group savings, which is to make financial contributions to a fund to be invested and profitability.

There are other investments not related to financial products such as those on real estate, artwork, woods or stamps.