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Section 3. Types of Investments

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This article is from the What Every Investor Should Know.

Section 3. Types of Investments

There are two broad categories of securities available to investors--equity securities (which represent ownership of a part of a company) and debt securities (which represent a loan from the investor to a company or government entity). Each type has distinct characteristics plus advantages and disadvantages, depending on an investor's needs and investment objectives.

 

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