Employees Stock Options (ESOPs): –
ESOPs are given by a company to its employees as an incentive and as a retention strategy. Shares are given by employees at a predetermined price at a future date under the terms of an ESOP. Employees and Directors who exercise their ESOP grant option receive theirs shares.
Bonds/ Fixed income securitieS
Bond is an investment that often demands an upfront investments, then pays a reoccurring amount over the life of the bond. Then, when the bonds mature, the investors receive the capital invested into the bond back. Similar to debt, bond investments are the mechanism for certain entities to raise money. Many government entities and companies issue bonds; then investors can contribute capital to earn a yield.
The recurring payment awarded to the bondholders is called a Coupon Payment. Because the coupon payment on bond investment is usually fixed, the price of a bond will often fluctuate to change the bond’s yield.
Index Fund and Mutual Funds
Instead of selecting each individual company to invest in, index fund, mutual fund and other type of fund often aggregate specific investment to craft one investment vehicle.
For example, can buy a share of a single mutual fund that holds ownership of small cap, emerging market companies instead of having a research and select company on its own.
Mutual funds are actively managed by a firm, while index funds are often passively managed. This means that the investment professionals overseeing the mutual fund is trying to beat a special benchmark. For this reason, mutual fund May be more passive- style funds.
Real Estate.
Real estate investment are often broadly defined as investment in physical, tangible spaces that can be utilized. Land can be built on, office building can be occupied, warehouse can store inventory and residential properties can house families. Real estate investment may encompass acquiring sites, developing sites for specific uses, or purchasing ready to occupy operating sites.
For example, an investor can invest in farmland ; in addition to reaping the reward of land value appreciation, the investment earns a return based on the crop yield and operating income.
Commodities.
Commodities are often raw materials such as agriculture, energy, or metals. Investors can choose to invest in actual tangible commodities (that is owning a bar of gold). or can choose alternative investment products that represents digital ownership (i.e. gold ETF).
Commodities can be an investment because they are often use as inputs to society. Consider oil, gas, or other form of energy. During a period of economic growth, companies often have greater energy need to ship more product or manufacture additional goods. In addition, consumer may have greater demand for energy due to travel. In example the price of commodities fluctuates and may yield a profit for an investor
Cryptocurrency.
Cryptocurrency is a blockchain based currency used to transact or hold digital value. it’s companies can issue coins or tokens that may appreciate in value. These tokens can be used to transact with or pays fees to transact using specific networks.
In addition to capital appreciation, cryptocurrency can be staked on a blockchain . This means that when investors agrees to lock their tokens on a network to help validate transactions, their investors will be rewarded with additional tokens. In addition cryptocurrency has given to decentralized finance, a digital branch of finance that enabled users to loan , leverage, or alternatively utilize currency.
Collectibles.
A less traditional form of investing, collecting or purchasing collectibles involves acquiring rare items anticipation of those item becoming in higher demand.
The concept behind collectibles is no different then other form of investing such as equities. Both predict that the popularity of something will increase in the future. For example, a current artist may not be popular but changes in global trends, styles, and market interest. However, their art may become more valuable in time should the general population take a stronger interest in their work.