Chapter 12. Investments

Ace Jones

Revision 4.7.01 (2014-08-30)

Investments in KMyMoney

Investments

Investments are instruments for investing money that are traded on a market. Stocks, bonds, and mutual funds are the most common investments; so they are the ones supported most directly. Futures, commodities, options, and more complex derivatives are also sometimes used, but KMyMoney has no special functionality for them. As long as they behave like a stock or a bond, they can be tracked easily.

Base Currency

Each investment has a Base Currency. This is the currency in which it is traded. When a price quote is entered for an investment, the currency of the value given is always its base currency. A stock on the NYSE (New York Stock Exchange) would be in US dollars, and one on an Australian market would be in Australian dollars.

Investment Accounts

Investment Accounts hold a collection of investments. An Investment account contains transactions, such as buys and sells, of those investments. All transactions in an Investment account must relate to a specific investment. There is no separate cash balance in an investment account. For that, you need a Brokerage Account.

Brokerage Accounts

An investment account often has an associated Brokerage Account. This is also sometimes referred to as a Cash Account. Investment accounts cannot contain cash transactions, like a transfer from your bank. When a stock is sold, the proceeds are typically placed in the Brokerage Account.

When you create an Investment Account, you have the option of creating an associated Brokerage Account with it.