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So far, we have discussed the kinds of investments that most
people encounter. There are other, more sophisticated investment options that
are suitable only for investors who have special expertise.
Some of these
investments, called derivatives, are variations of the basic investments.
Others trade commodities and hard assets. For example:
? Options are rights to buy or sell a stock or other security for a specified price within a specific period.
? Futures are rights to buy or sell commodities (wheat, soybeans, pork bellies, etc.) or certain other investments for a specified price on a specific date.
? Precious metals are hard assets that include gold, silver, and platinum. Their prices fluctuate daily.
? Currencies are the moneys of nations. Their values rise and fall against those of other currencies, and you can make profits by taking advantage of these differences.
? Art, antiques, rare coins, and stamps are hard assets that require specialized knowledge that often takes years of study.
These investment options require an in-depth knowledge of the
market. Because they rise and fall in value very frequently, investing in them
requires some skill at watching the market.
Finally, some closing words on investment