What is investing & how does it work?

Investing involves putting your money to work by buying assets — such as stocks or bonds — to generate profits (often called returns) beyond your initial investment. When speaking about investing, people often refer to financial markets where investors connect to buy and sell assets, such as stocks or bonds.

What is a “do-it-yourself” investment?

It can also be about investing in commodities, such as gold, art, antiques, or other collectibles, where value can go up over time. People can take a direct “do-it-yourself” approach using a mix of fundamental and technical analysis, invest in mutual funds, or use professional investment services.

Who can invest?

Anyone who has some money saved can invest but should have a thorough understanding beforehand. Deciding your investment strategy depends on how much money you can invest and the level of risk you are willing to take.

How do you invest?

Brokerage and retirement accounts are two of the most common ways individuals invest. Our experts answer readers' investing questions and write unbiased product reviews ( here's how we assess investing products ). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.