High Income Investments

There are many options available to people wanting to invest a portion of their wealth. Investment possibilities range from purchasing stocks to financing a start-up company. Each type of investment comes with risk, and some investment options carry more risk than others. Individuals seeking to profit from high income investments must consider their risk tolerance. Risk tolerance is the investor's ability to deal with loss. A low risk investment is appealing because it incurs only small losses. However, low risk investments rarely produce large profits quickly. A high risk investment leaves the investor open for big losses, but also allows the possibility of big gains.

Fast Facts

  • The SEC, or Security and Exchange Commission, is a government agency that oversees the protection of investors and works to maintain efficient marketplaces.
  • Hedge funds are a type of investment that is somewhat similar to a mutual fund. However, hedge funds are not required to register with the SEC and therefore do not have the added safety of being SEC regulated.

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Results 1-2 of 2 for "high income investments"

  • What Is a Bond?

    A bond is a debt instrument--basically an IOU--where an investor is loaning money to the US government, a stat...
    • Site: financialplannernetwork.com
  • Futures Markets as an Investment Tool

    Futures markets are exchanges where futures contracts and options on futures contracts are traded. Exchanges m...
    • Site: financialplannernetwork.com
    • 1 of 1 user(s) found this useful
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