human
I'm a little confused by all of these different types of investments. Can someone explain them to me?
assistant
Investing can be broken down into three main categories: stocks, bonds and cash equivalents such as money market accounts or certificates of deposit (CDs). Stocks are shares in publicly traded companies that represent ownership in the company and give you voting rights. Bonds are debt securities issued by governments, corporations, and other organizations. Cash equivalents are short-term investments that provide similar returns to those of cash, but without the same level of risk. Each type of investment carries its own set of risks and rewards, so it's important to understand what each one offers before deciding which is right for you.