www.CandleStickForums.com
Alternative Investments
When referring to alternative investments you could be speaking to a number of possible investment opportunities. You may be referring to commodities, hedge funds, real estate, private equity, or perhaps venture capital. Basically alternative investments include investment products other than the more traditional investments such as stocks and bonds, money markets, or cash. Many investors go with investments of this nature for various reasons. Some investors may be looking to acquire less risk with the possibility for higher returns, reduced volatility, higher liquidity, and in some cases portfolio diversification. In today's article we will discuss three different investment options that fall under this category including hedge funds, commodities, and venture capital.
Hedge Funds
Hedge Funds are private investments funds that are typically open only to a limited group of professional or wealthy investors. Each fund has its own strategy, employed by its investment manager and the point of this fund is to offset potential losses in the principal markets by hedging their investments. Short selling is often a hedging strategy used among many others. They are loosely regulated alternative investments that allow hedge fund investing to be done "under the radar." Fees are based on performance and the funds under management, and the funds will usually have minimum investment periods.
Commodities
Commodity trading is also known as futures trading. Commodities are known as anything for which there is a demand and its price is determined as function of its market as a whole. When trading commodities you don't actually buy or own anything, but you are speculating on the future direction of the price for the commodity you are trading. There is always a buyer and a seller however to buy or sell a commodity really signifies the direction in which you expect the future prices will take. Futures contracts are used by those participating in this type of trading.
Venture Capital
Venture capital, like hedge funds, typically comes from wealthy individuals or institutional investors and it is pooled together by dedicated investment firms. Alternative investments of this nature are a type of private equity capital provided mostly to high potential, yet immature, growth companies in order to generate a return. These returns are generated through eventual realization events such as trade sales of the company or through and IPO. They are typically made as cash in exchange for shares in the invested company. Venture capitals are used a lot for newer companies that have a limited operating history and are too small to secure a bank loan, complete a debt offering, or are just too small to raise capital in the public markets.
2. By: www.CandleStickForums.com
When referring to alternative
investments you could be speaking to
a number of possible investment
opportunities. You may be referring to
commodities, hedge funds, real
estate, private equity, or perhaps
venture capital.
3. By: www.CandleStickForums.com
Basically alternative investments
include investment products other
than the more traditional investments
such as stocks and bonds, money
markets, or cash. Many investors go
with investments of this nature for
various reasons.
4. Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
5. By: www.CandleStickForums.com
Some investors may be looking to
acquire less risk with the possibility for
higher returns, reduced volatility, higher
liquidity, and in some cases portfolio
diversification. In today's article we will
discuss three different investment
options that fall under this category
including hedge funds, commodities, and
venture capital.
7. By: www.CandleStickForums.com
Hedge Funds are private investments
funds that are typically open only to a
limited group of professional or wealthy
investors. Each fund has its own
strategy, employed by its investment
manager and the point of this fund is to
offset potential losses in the principal
markets by hedging their investments.
8. By: www.CandleStickForums.com
Short selling is often a hedging strategy
used among many others. They are
loosely regulated alternative investments
that allow hedge fund investing to be
done "under the radar." Fees are based
on performance and the funds under
management, and the funds will usually
have minimum investment periods.
10. By: www.CandleStickForums.com
Commodity trading is also known as
futures trading. Commodities are known
as anything for which there is a demand
and its price is determined as function of
its market as a whole. When trading
commodities you don't actually buy or
own anything, but you are speculating on
the future direction of the price for the
commodity you are trading.
11. By: www.CandleStickForums.com
There is always a buyer and a seller
however to buy or sell a commodity
really signifies the direction in which
you expect the future prices will take.
Futures contracts are used by those
participating in this type of trading.
13. By: www.CandleStickForums.com
Venture capital, like hedge funds,
typically comes from wealthy individuals
or institutional investors and it is pooled
together by dedicated investment firms.
Alternative investments of this nature are
a type of private equity capital provided
mostly to high potential, yet immature,
growth companies in order to generate a
return.
14. By: www.CandleStickForums.com
These returns are generated through
eventual realization events such as
trade sales of the company or through
and IPO. They are typically made as
cash in exchange for shares in the
invested company.
15. By: www.CandleStickForums.com
Venture capitals are used a lot for
newer companies that have a limited
operating history and are too small to
secure a bank loan, complete a debt
offering, or are just too small to raise
capital in the public markets.
16. By: www.CandleStickForums.com
Other alternative investments are available
to investors in addition to those noted above,
such as real estate and private equity
investments. Like all other types of investing
they can be risky and can include potential
one time losses from certain rare events and
high management fees. Continue to research
and find out if any of these investment
options work for you.
