Types of Investment Alternatives An investment that can yield returns in the form of rents, capital gains, and certain tax benefits Shares of ownership in the assets and earnings of a business corporation Mutual funds or ETFs Mutual funds or ETFs Common stock Non-convertible bonds Preferred stock Real estate Interest-bearing, negotiable certificates of long-term debt issued by a corporation, a municipality (such as a city or state), or the federal government An investment company that combines the funds of investors who have purchased shares of ownership in it and then reinvests that money in a diversified portfolio of stocks and bonds issued by other corporations or governments An investment that has some characteristics of both a stock and a bond Use your knowledge of different investment features and the information about the individuals below to complete the following paragraphs: Matthew believes that housing prices are likely to rise rapidly in the near future and wants to profit by investing in real estate. He is considering buying individual properties, but he has little practical knowledge of real estate. A friend suggests that he buy in the real estate sector, because this type of investment vehicle offers diversification within a particular sector. Another friend advises that Matthew stay away from real estate entirely and instead consider buying stock with a fixed stated dividend rate, known as a preferred stock. Holders of this kind of stock receive dividends holders of common stock receive theirs. Types of Investment Alternatives An investment that can yield returns in the form of rents, capital gains, and certain tax benefits Shares of ownership in the assets and earnings of a business corporation Mutual funds or ETFs Mutual funds or ETFs Common stock Non-convertible bonds Preferred stock Real estate Interest-bearing, negotiable certificates of long-term debt issued by a corporation, a municipality (such as a city or state), or the federal government An investment company that combines the funds of investors who have purchased shares of ownership in it and then reinvests that money in a diversified portfolio of stocks and bonds issued by other corporations or governments An investment that has some characteristics of both a stock and a bond Use your knowledge of different investment features and the information about the individuals below to complete the following paragraphs: Matthew believes that housing prices are likely to rise rapidly in the near future and wants to profit by investing in real estate. He is considering buying individual properties, but he has little practical knowledge of real estate. A friend suggests that he buy in the real estate sector, because this type of investment vehicle offers diversification within a particular sector. Another friend advises that Matthew stay away from real estate entirely and instead consider buying stock with a fixed stated dividend rate, known as a preferred stock. Holders of this kind of stock receive dividends holders of common stock receive theirs