Investments are what exactly?

[Baron Von Murderpaws]

Lets say I invest a little money in a private company......is that the same thing as buying stock?

Is there a difference between an investment and stock? If so, what?

If the company goes public, what would that mean for my investment?


Trying to find out how all of this works. Thanks!

 

[PinktheFloyd88]

Lets say I invest a little money in a private company......is that the same thing as buying stock?

Are you asking if not buying a stock is the same as buying stock?

No, it's not.

Is there a difference between an investment and stock? If so, what?

Yes, there are different types of investment. Annuities, 401k, Life insurance, bank CD, etc. Not all investments are stock.

If the company goes public, what would that mean for my investment?

That you make money based on the IPO price

 

[Toro]

Lets say I invest a little money in a private company......is that the same thing as buying stock?

Is there a difference between an investment and stock? If so, what?

If the company goes public, what would that mean for my investment?


Trying to find out how all of this works. Thanks!

Lets say I invest a little money in a private company......is that the same thing as buying stock?

It depends. Stocks represent ownership in a publicly-traded company. You own a part of it. If you are investing in the ownership of a private company, then you own part or all of it. However, if the "investment" is a loan to the private company, then that's not the same. Also, with a publicly-traded stock, you can sell it with a touch of a button. You cannot with a private company.

Is there a difference between an investment and stock? If so, what?

Yes and no. If you invest in a publicly-traded stock, then yes. But if you invest in a bond, a house or a collection of baseball cards, then no. "Investment" means committing your capital with the intent of making a return. Stocks are one of many types of investments.

If the company goes public, what would that mean for my investment?

If you owned common equity in a company that was going public, then after a lock-up period, you would be be able to sell your stock at the push of a button.

 

[Deplorable Yankee]

Lets say I invest a little money in a private company......is that the same thing as buying stock?

Is there a difference between an investment and stock? If so, what?

If the company goes public, what would that mean for my investment?


Trying to find out how all of this works. Thanks!

You could strike a private deal with a small company..it's whatever terms the two parties agree upon

 

[sjay]

Are you asking if not buying a stock is the same as buying stock?

No, it's not.


Yes, there are different types of investment. Annuities, 401k, Life insurance, bank CD, etc. Not all investments are stock.



That you make money based on the IPO price

annuities and 401k's also can have and often do have stocks as part or most of the holdings.

 

[flan327]

Lets say I invest a little money in a private company......is that the same thing as buying stock?

Is there a difference between an investment and stock? If so, what?

If the company goes public, what would that mean for my investment?


Trying to find out how all of this works. Thanks!

Honestly

Read a book
Or talk to a financial advisor