Some investors may prefer to focus on individual securities, selecting from stocks, bonds, Exchange-Traded Funds (ETFs) and fixed income choices, such as bonds and certificates of deposit. Unlike mutual funds and similar pooled investments, the individual investor is making a specific purchase or investment in selected securities. The investor may keep the individual investments separate and manage them independently. Ameritas Investment Company, LLC can assist in the purchase, trade and/or investment in individual securities.
These versatile investment instruments offer opportunities for growth, income or a combination of the two. Ameritas Investment Company, LLC has access to all major U.S. stock exchanges.
Buying stock means you become a shareholder or stockholder. You make money when the stock increases in value or when the company that issued the stock pays dividends, or a part of its profits, to its shareholders.
Bonds are debt securities. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When you buy a bond you are lending to the issuer, which may be a government, municipality or corporation. In return, the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the principal, also known as face value or par value of the bond, when it matures or comes due after a set period of time.
This conservative investment has widespread appeal and may grow tax-exempt. Ameritas Investment Company, LLC offers:
- General Obligation Bonds
- Revenue Bonds
- Insured Municipals
- Pre-refunded Municipals
- AMT Municipals
Exchange-traded funds (ETFs) are designed as an efficient and simple way for investors to utilize basket trading. Basket trading lets you create a list of ETFs, called a basket, that you can save, trade, manage and track as one entity. ETFs are built like an index fund, but trade like a stock. They provide investors the advantages of lower costs and improved tax efficiency over traditional actively-managed mutual funds.
Fixed Income Securities
When held to maturity, fixed income securities provide a source of income, along with protection of principal. Consider these options:
- Brokerage Certificates of Deposit (CDs)
- Corporate Bonds
- T-Bills (U.S. Treasury Securities)
- U.S. Government Agency Securities
- Mortgage-backed Securities
A portfolio containing a significant portion of fixed income investments may not provide the protection an investor needs to overcome the effects of inflation. However, fixed income securities provide the diversification needed to maintain a well-balanced investment portfolio.
Securities products are subject to investment risk, including possible loss of principal. Before investing, carefully consider the investment objectives, risks, limitations, charges and expenses of the product and any underlying investment options. This information can be found in the product and investment option prospectuses. Copies are available from your registered representative or AIC. Please read carefully before investing.