Investments can take many forms, each structured differently and carrying its own level of uncertainty. Common options include stocks, bonds, mutual funds, ETFs, high-yield cash accounts, U.S. Treasuries, and digital assets like cryptocurrency.
Some investments might focus on long-term growth, while others might be used for income or capital preservation. Knowing how these assets are bought and sold, how their values fluctuate, and what influences their performance may help clarify their role in an overall strategy.
In this blog, we break down nine investment types. For each, you will learn how it’s typically structured, how it may function within a portfolio, and the risks to consider.
These nine investment options vary in structure, risk, and return potential, offering different roles within an investment strategy. Let us understand them in detail.
1. Stocks
Stocks represent shares of ownership in a company. As a shareholder, you may earn returns through dividends or capital appreciation if the company’s stock price rises. However, stocks can also fluctuate significantly in value due to market volatility.
Example:
Buying shares of Apple (AAPL) or Microsoft (MSFT) means you own part of those companies. You may receive dividends periodically or realize gains if you sell shares at a higher price than your purchase price. How to access stocks on Public? Public gives you access to thousands of U.S. stocks, including large-cap, mid-cap, and dividend-paying companies. You can buy full or fractional shares, track live price changes, and view detailed company data all within a single platform.
Want to go deeper before you invest? Use Alpha by Public to ask questions about any U.S. stock, from financials and market trends to earnings summaries, and get AI-powered answers.
Bonds are debt securities issued by governments, municipalities, or corporations to raise funds. Buying bonds essentially means lending money to the issuer in exchange for periodic interest payments, with the principal repaid upon maturity.
Example:
You purchase a corporate bond issued by a large utility company. The bond has a $1,000 face value, a 5% annual coupon, and matures in 3 years. You would receive $25 in interest payments every six months until maturity, i.e., until the original bond value is repaid, assuming the issuer remains in good standing.
Options are financial contracts that give you the right, but not the obligation, to buy or sell an underlying asset at a specified price within a set time frame. Call options and Put options are the two traded options that involve buying and selling an asset at a specific price before the option expires.
Example:
You pay a $250 premium to buy 100 shares of a stock at a set price before the option expires. If the stock’s market price rises, you can sell the option at a profit. If the price stays below the strike price, the option may expire without value, and your loss is limited to the $250 premium.
How to access options on Public? With options trading on Public, you can review strike prices, expirations, and premiums in the same place you manage your stocks and ETFs.
4. Individual Retirement accounts
IRAs are tax-advantaged accounts used to invest for retirement. The two main types are:
Traditional IRAs: Contributions may be tax-deductible based on income and workplace plan status. Withdrawals are taxed, and RMDs begin by April 1 following the year you turn 73.
Roth IRAs: Contributions use after-tax dollars, and qualified withdrawals are tax-free. For 2025, eligibility phases out between $150,000–$165,000 (single filers) and $236,000–$246,000 (joint filers). No RMDs are required during your lifetime.
In 2025, total IRA contributions are capped at $7,000 ($8,000 if age 50+). IRAs can hold a wide range of assets, including stocks, ETFs, bonds, and more.
Example:
Suppose you contribute $7,000 to a Roth IRA in 2025 and invest it in a mix of stocks and ETFs. As long as your income falls within Roth IRA eligibility and you follow IRS withdrawal rules, both growth and qualified withdrawals may be tax-free.
What’s the 1% match on Public? As part of the IRA Match Program, Public Investing will fund a 1% match of all IRA transfers & 401(k) rollovers and all contributions (up to the annual contribution limit) made to your Public IRA. The matched funds must be kept in the account for at least 5 years to avoid an early removal fee. See full terms of the Program here. Rate and terms are subject to change at any time.
5. High-Yield Cash Accounts (HYCAs)
HYCAs are interest-bearing accounts designed to hold cash while earning yield. These accounts typically credit interest on a regular schedule. However, the rate may vary based on market conditions or provider terms.
Example:
You deposit $10,000 into a HYCA with a quoted 4.1% annual percentage yield (APY). If the rate remains unchanged for a year, the interest earned would be approximately $410 before taxes.
How to access HYCA on Public? Public’s High-Yield Cash Account lets you earn a competitive yield on your uninvested cash while keeping it accessible. Funds are held with partner banks and are eligible for FDIC insurance through those institutions.
6. U.S. Treasury Securities (T-Bills, T-Notes, T-Bonds)
Treasuries are debt securities issued by the U.S. government. When you buy one, you are lending money to the government in exchange for interest income and repayment at maturity. Treasuries are used by investors seeking preservation of capital and predictable returns.
Example:
You purchase a 6‑month Treasury bill at $98.50 per $100 face value. At maturity, you receive the full face amount, with the discount representing your yield.
How to access Treasuries on Public? Build a Treasury ladder on Public with a $1,000 initial deposit. A Public Treasury Account lets you invest in a ladder of US Treasuries with maturities from 3 months to 30 years. You can choose a pre-built ladder to match your timeline, or build your own.
7. Mutual Funds
When you buy a mutual fund, you pool your money with other investors in a professionally managed investment fund that holds stocks, bonds, or both. Each fund is managed by a portfolio manager who follows the fund’s stated investment objective. Shares are bought or sold at the fund’s net asset value (NAV), which is calculated once per day after the markets close.
Example:
You invest $3,000 in a mutual fund with a net asset value (NAV) of $100. You receive 30 shares. Over time, if the fund’s NAV increases and it pays dividends, your total value grows through both price appreciation and income.
8. Exchange-Traded Funds (ETFs)
An ETF is a security investment fund that trades on an exchange, similar to a stock, offering one-click access to dozens or thousands of holdings.
Most ETFs are often designed to track a market index or investment theme and may provide exposure to broad or targeted segments of the market. ETF shares can be bought or sold throughout the trading day, and their prices move in real time.
Example:
You invest $1,000 in an ETF tracking the S&P 500. As the value of those underlying holdings changes, so does the price of your ETF share.
Cryptocurrencies are digital assets that operate on blockchain technology. They trade 24/7 and include assets such as Bitcoin, Ethereum, and others. Crypto can be highly volatile and may be influenced by factors such as liquidity, sentiment, or network activity.
Example:
You purchase $200 worth of Bitcoin at $40,000, receiving 0.005 BTC. If the market price moves to $44,000, the value of your holding changes to $220, showing a $20 difference.
How to trade on Public?Trade crypto on Public 24/7 in $1 increments. Choose from 40+ assets, automate recurring buys or set limit orders, and tap on-chain metrics plus price-alert tools unlocked with Public Premium.
Choosing investment platforms
The platform you use can influence how easily you access, track, and manage different types of investments. On Public, you can trade and monitor multiple asset classes, including stocks, bonds, ETFs, Treasuries, crypto, IRA, high-yield cash accounts, and options, all within one account. The platform also offers tools to view performance data, analyze holdings, and explore market information without switching between separate services.
In addition, Public’s AI assistant, Alpha, can provide on‑demand market data, earnings summaries, and company overviews to help you quickly access relevant information while researching investments.
Conclusion
As an investor, you have access to a wide range of investment types, from stocks and bonds to cryptocurrencies. This guide outlines how each type functions and provides current market context, helping you understand the variety of instruments available in today’s market.
Understanding the diverse types of investments available and how they interact with broader market forces may significantly enhance your financial journey.
