What are the three tools to realize financial management? Who has a high proportion?

People who are new to financial management don't know how to invest, and they don't know what stocks, funds, bonds, etc. Both, not to mention what index funds and fixed investment are, so what are the three tools to realize financial management is even more unclear. Now let's take a look at what a financial management toolkit is.

Three basic financial instruments, stocks, bonds and funds.

Stock is a certificate issued by a listed company to shareholders in order to raise a large amount of funds. There are two kinds of stocks, one is common stock and the other is preferred stock.

The risk of common stock is relatively large, and the stocks held by retail investors in the stock market belong to common stock. This kind of stock is relatively risky, and the income from it is unstable, which will fluctuate with the company's operating conditions, and the order of income is first low and then high.

Preferred stock will have more privileges than common stock and will get the company's income first. If the company goes bankrupt due to poor management, they can get the remaining property first, but they can't participate in the company's operation.

Bonds are securities issued by debtors such as governments, banks and enterprises, and promise to repay the principal and interest on a specified date.

Government issues can be called national debt, finance issues financial securities, and companies issue corporate bonds. There is a debt relationship between investors who buy bonds and issuing banks, that is, issuers are in debt and investors who buy bonds are creditors. Bonds are less risky, have a better reputation, and the interest rate is higher and more stable than that of deposit banks.

A fund is a certain amount of money set up for a certain purpose. A fund is like a box. Investors put the money they bought in this box, and then the owner of the box will take the money in the box to make other financial products, and then put the principal and interest back after making money.

Fund managers can earn more money than our simple investment, and the risk of loss is smaller. The threshold for investors to buy funds is also relatively low, so they can invest as long as they have spare money.