Presented by Daniel Toriola
Choosing the right Stock is a very complicated process and investors have different approaches. However, it is
wise to follow general steps to minimize the risk of the investments.
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Comparing A Money Market And A Certificate Of Deposit
By Gabriel Adams
As investors, we all face common problems. Where can I find the best rate of return? What is a
good stock to invest in? What do I do with my money in between investments? With the first two
questions, limitless answers can apply. However, with the last question, there are two popular
alternatives. A CD or money market account are both viable choices that should be investigated. But
which one will give you the most bang for your buck?
CD’s or certificates of deposit are basically like you giving the bank a loan. You give the bank a certain
amount of money and they give you a certain amount of interest. The interest rate that you get is
proportionate to how long the investment is. Before you ever deposit your money into a CD, you
decide on how long the money will be invested. The longer you invest, the higher your interest rate will
be. This is why older people are notorious for having many CD’s because they simply want to keep the
money they have at a reasonable interest rate.
CD’s can range in time frames from a few weeks to years. It all depends on the investor. The bad
thing about CD’s is that you don’t have access to your money. If you decide that you need to get your
money out of a CD before it matures, you will probably have to pay a fine. So if you get a CD, your
money is officially tied up.
The other popular choice is a money market account. This is basically like an investor’s checking
account. Whichever investment firm you have will take the balance from your money market account
and invest it into mutual funds and other