ABSTRACT
Stocks are classified as equity instruments, because they provide the stockholder with ownership or equity in a corporation. Common stocks are the most widely held type of equity security. Corporations are owned by their stockholders, and the stockowners elect a board of directors who in turn appoint upper management. Bonds are debt securities or IOUs issued by governments, government agencies, and corporations. Bonds are usually purchased at face value. Depository institutions such as banks, savings and loan institutions, and credit unions offer savings accounts that are insured up to a maximum amount of money by the Federal Deposit Insurance Corporation (FDIC). Such institutions also offer certificates of deposit (CDs). The money market mutual funds consists of very short-term debt securities issued by the federal government, banks, corporations, and other financial institutions. A mutual fund pools the resources of many investors into a professionally managed portfolio of securities. Many therapists would be better advised to invest in real estate-related securities.
