Bonds investment

3) stocks investment

4) mutual funds investment

5) portfolio investment

6) foreign direct investment

b) Such investments make up the foundation of our investment pyramid. They represent the least volatile asset class and historically have produced the lowest returns on the investment pyramid. They are generally the best investments for short-term holding periods. We don't invest in cash to make a lot of money; we invest in cash because it's liquid and secure. We know how much we can get, and when we can get it.

c) When you make this investment, you are loaning a company, government or municipality a sum of money in return for income. In return for the loan, you get an interest rate payment and a promise to pay the loan back. And because the borrower gives you a promise to pay it back, a bond is still considered a conservative investment.

d) Corporations divide their ownership interests into segments, or shares of stock. Publicly traded corporations offer shares of their stock for purchase to the general public. When you invest in stocks, you become an owner of that company, with all the rights of ownership. Unlike bonds, shares of stock have no maturity dates or required interest payments. Stock investors are usually looking for company growth, which tends to drive up the share price of the company stock.

a) They pool the resources of many individual investors who have the same financial goals. The mutual fund portfolio manager invests in a mix of stocks, bonds or money market securities which he/she thinks will achieve the fund's investment objective.

e) This type of investment represents passive holdings of securities such as foreign stocks, bonds, or other financial assets, none of which entails active management or control of the securities' issuer by the investor. It implies the acquisition of portfolio capital and usually refers to transactions across national borders and/or across currencies. In contrast with direct investment, a portfolio investment position does not convey significant control over the management or operations of the foreign firm.

f) This investment type refers to the acquisition or construction of physical capital by a firm from one (source) country in another (host) country. It can take two forms: (1) greenfield investment to build new capacity such as the establishment of new factories (2) the purchasing of assets of existing local businesses by overseas investors (acquisition).