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Understanding Stocks

Radio Transcript, 60 seconds, for use during week of September 24.

This is an Invest Wisely minute brought to you by Iowa State University Extension.

A basic understanding of stocks can help you increase your investment successes. There are several ways to categorize them – income stocks, growth stocks; or value, cyclical, or speculative stocks – to name a few.

But few investors can afford to buy individual stocks and be adequately diversified.  Instead, consider mutual funds that pool money from many investors to purchase a basket of stocks.  Mutual funds also could be a smart move if you don’t have the skill or time to select and monitor individual stocks. 

Invest Wisely comes from Iowa State University Extension through a grant from the Investor Protection Trust providing investor education on the web at investorprotection.org.

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Updated September 24, 2007