Types of Investments

Once you understand the primary objectives of the client or firm you would determine the best type of investment to meet their goal.

Click the tabs below to learn more about investment types.

Equity

Debt

Direct Investment

Equity means investors purchase shares in a business through a market, and holders of these shares own a percentage of the business. With this ownership, investors potentially have a claim to earnings and voting rights in the business. The equity issue usually includes specific details of claims to earnings and voting rights.

  • Purchase shares through a market.
  • Own a percentage of the business.
  • Claim earnings and voting rights.

Investors may also use debt as another investment vehicle. Investing in debt allows people to loan money to a business for future interest payments.

  • Loan to a business for future interest payments.

In direct investment, investors actually purchase an ownership directly in a business for a right to the profits and voting within the business.

  • Purchase ownership directly in the business.
  • Claim right to the profits and voting in the business.