Episode 1 – Basic Investment Products

In this episode we will discuss about GICs/CDs, Bonds, Stocks, Mutual Funds and ETFs.

A Guaranteed Investment Certificate (GIC) is a Canadian investment that offers a guaranteed rate of return over a fixed period of time, most commonly issued by trust companies or banks.

A certificate of deposit (CD) is a time deposit, a financial product commonly sold in the United States and elsewhere by banks, and credit unions. CDs are similar to savings accounts in that they are insured “money in the bank” and thus virtually risk free.

A bond is a fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.

A stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings.

A mutual fund is an investment vehicle made up of a pool of moneys collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets.

An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange.

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