What investment vehicle typically requires a higher minimum investment and has limited liquidity compared to stocks?

Bonds are an investment vehicle that generally requires a higher minimum investment and features limited liquidity compared to stocks. When individuals purchase bonds, they are typically buying debt instruments issued by corporations or government entities. These instruments often have a face value of $1,000 or more, which sets a higher minimum investment requirement compared to many stock options.

Additionally, bonds can be less liquid than stocks, meaning they may not be as easily bought or sold in the market without potentially affecting their price. While there are markets for trading bonds, they do not always operate with the same volume or frequency as stock trades, which can lead to challenges in executing transactions at desired prices.

In contrast, mutual funds and exchange-traded funds (ETFs) often allow for lower minimum investments and greater liquidity, as they are designed to be easily traded on exchanges or purchased at net asset value. Real estate investment trusts (REITs) can also come with different liquidity characteristics depending on whether they are publicly traded or private. Thus, when considering minimum investment and liquidity, bonds clearly fit the criteria of requiring higher investment and providing limited liquidity compared to stocks.