Years ago, I took the time to teach myself about investment basics--namely what stocks and bonds are. I know that we hear these terms being tossed around in the news within different contexts, from municipal bonds to a poor performance in the stock market within a given week. But there are still some people out here who don't understand just what these terms and their encompassing principles are.
This morning on NBC's "The Today Show," a piece was presented from the show's "Investment 101" segment. The piece focused on presenting a basic understanding of what stocks and bonds are, as well as the underlying investment principles they represent. Since the financial reporters presented the concepts in such simplistic terms, I thought it would be a great post for this week.
I have taken the liberty of embedding 2 videos below relating to the show's investment focus. The first video demonstrates how to budget for investing disposable income (a rare thing to be sure nowadays) and the second gives an explanation of what stocks and bonds are. Please watch and take away an understanding of basic money investment concepts.
Investing 101: The best places to put your money (Stocks & Bonds Defined)