e extra cash, you'd probably like a safe place to store it. For some people, the inside of a mattress seems like the perfect spot. But hiding your money doesn't necessarily make it safe. It could get lost, stolen or damaged. Just as important, it would not be "working" to make you more money. In fact, when you consider factors such as the increasing cost of living - inflation - the money hidden in your mattress would be worth less in the future.
             A better way to keep your money secure - and productive - is to invest it. An investment is anything you spend money on with the intention of making more money. Investments take many forms, from real estate to rare comic-book collections to buying stocks and bonds.
             In order to choose the best investment for you, you have to evaluate your personal investment goals (see Chapter VII). Some investors, armed with loads of cash and confidence, are eager to take risks in hopes of realizing big gains. Some seek a way to shelter their savings from being eroded by inflation. And others want their money to earn a steady income. But all investors seek ways to make their capital as profitable as possible.
             One alternative for investors is to invest their money in corporate bonds, long-term loans to growing companies. Companies sell bonds at a specific rate of interest. So the investor knows exactly how much will be earned - called rate of return - and how long the money will be tied up.
             Investors can also put their money into stocks. Most corporations issue two types of stocks. Preferred stock comes with a guarantee that its owner will be the first to receive a share in the company's profits, a periodic payment known as a dividend. Also, if the company fails, or liquidates, preferred stockholders are assured first crack at claim, recouping their original investment. Bond owners are considered creditors of a corporation - as opposed to part owners - and therefore receive priority over both prefer...