The investment landscape in the UK is quite similar to the rest of the world. You can invest in individual stocks and shares in UK companies and those operating around the world.
Most people choose from four main types of investment known as asset classes: shares where you buy a stake in a company; Cash the savings you put in a bank or building society; Property when you invest in a physical building whether it’s commercial or residential or bonds when you loan your money to a company or government.
Outside of that there are other types of investments available too, including foreign currency, collectibles such as art and antiques; Commodities like oil, coffee, corn, rubber or gold or contracts for difference where you bet on shares gaining or losing value.
The various assets owned by an investor are called a portfolio.
As a general rule it’s prudent to spread your money between the different types of asset class which helps lower the risk of your overall portfolio returns and your investment will come in the form of dividends and capital gains.
That’s the difference between the price you pay and the price your sell for.
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