How does alternative investing differ from stock and bond investing?

Alternative investing, which includes investing in commodities, real estate, and hedge funds, is fundamentally different from traditional stock and bond investing. Whereas stocks and bonds are securities, or investments backed by the public offering of a company or government, alternative investments are not publically available and may be less regulated. Alternative investments can provide a more diversified, stable portfolio, as their performance isn’t tied to the stock market. They may provide higher returns over long-term investing periods, though they may also be more volatile than stocks and bonds. Alternative investments may also include investments in start-up companies, venture capital funds, private equity funds, and other types of private investments. These investments are typically only available to accredited investors and involve an increased amount of risk. They are also more illiquid than stock and bonds, meaning they may be harder to sell quickly and investors may have to accept a lower price. In New York, alternative investments are regulated by the Alternative Investment Law, which governs the administration and oversight of these investments. The law is designed to protect investors by granting authority to financial regulators to ensure alternative investments are conducted fairly, safely, and in accordance with regulations.

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How does alternative investing differ from stock and bond investing?

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