Explain types of investments.

Bonds: by purchasing a bond, you are lending money to a company or business—in return the company or government will eventually pay you back
Stocks: by purchasing stock, you are essentially buying a piece of the company, so you can vote as a shareholder and say what the company can or cannot do
Mutual funds: a collection of stocks and bonds that is held by a group of people. By investing in a mutual fund you are sharing in your part of the risk and your part of the reward

Business Explain