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Many investors maintain a diversified investment portfolio consisting of bonds, stocks and cash in varying percentages depending upon their individual circumstances and objectives. Because bonds typically have a predictable stream of income and repay principal at maturity, many invest in them to preserve and increase their capital or to receive dependable interest income. Whatever your goal – saving for a new home, your children’s education or retirement – Scottrade offers products to help you reach your investment objectives. Contact a stock and bond broker today for more information.
An investment portfolio is subject to many risks. Stocks, options and mutual funds are subject to market volatility and the chance that they may lose value. Bonds are subject to changes in interest rates, risk of defaults by the issuer, and the loss of purchasing power due to inflation.
While such a strategy does not guarantee a profit or against loss, a diversified portfolio can minimize these risks because the risk is distributed over a variety of investments. In a well-balanced investment portfolio, some holdings may be negatively affected by market changes, while others may have a positive reaction, thus balancing the portfolio.
Virtually all investments have some degree of risk. When investing in bonds, it’s important to remember that an investment’s return is linked to its risk. Riskier investments generally offer the potential for higher returns. Conversely, relatively safe instruments such as insured CDs and U.S. Treasuries offer relatively lower returns.
Risks common to most all bonds include:
Brokerage Products and Services offered by Scottrade, Inc. – Member FINRA and SIPC.
Online market and limit stock trades are just $7 for stocks priced $1 and above.
Any specific securities, or types of securities, used as examples are for demonstration purposes only. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.
Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. A mutual fund's prospectus contains this and other information about the mutual fund. Prospectuses are available through our trading site or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.
Investors should consider the investment objectives, charges, expense, and unique risk profile of an Exchange Traded Fund (ETF) carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. A prospectus contains this and other information about the ETF and should be obtained from the issuer. The prospectus should be read carefully before investing.
Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. The Margin Disclosure Statement and Agreement (PDF) is available for download, or it is available at one of our branch offices. It contains information on our lending policies, interest charges, and the risks associated with margin accounts.
Options are not appropriate for all investors. Detailed information on our policies and the risks associated with options can be found in Scottrade's Options Application and Agreement, Brokerage Account Agreement, and Characteristics and Risks of Standardized Options (also available at one of our branch offices). All option accounts require prior approval by Scottrade.
Investors should consider the investment objectives, risks, charges, and expenses of mutual fund carefully before investing. A prospectus contains this and other information about the fund and is available through www.scottrade.com or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.
Market volatility, volume, and system availability may impact account access and trade execution.
Testimonials may not be representative of the experience of other clients and are no guarantee of future performance or success.