October 29, 2008
What do you mean by investment How many investment product are you aware of?
sunny_bindas asked:
This is the question put enterance test in a crush course in stock market will you please help me to find an answer in 70-80 words. Thanks your stupid friend Sunny?
This is the question put enterance test in a crush course in stock market will you please help me to find an answer in 70-80 words. Thanks your stupid friend Sunny?
Filed under Investing by Administrator
Comments on What do you mean by investment How many investment product are you aware of?
Investment means to place a portion of your money in company shares or banking in order to obtain an increase.
Obviously, I’ve mentioned shares, there’s stocks, ISAs etc but also the gold index. However you must be aware that investing is not a sure way to make money as they can go up as well as down.
You can also use property as an investment. Buy a run down property in a good area, decorate and renovate it to a high standard and then sell on.
This a a tough question for someone to expect you to answer in in 70-80 words
An investment in an asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher
The building of a factory used to produce goods and the investment one makes by going to college or university are both examples of investments in the economic sense.
In the financial sense investments include the purchase of bonds, stocks or real estate property.
Be sure not to get ‘making an investment’ and ’speculating’ confused. Investing usually involves the creation of wealth whereas speculating is often a zero-sum game wealth is not created. Although speculators are often making informed decisions, speculation cannot usually be categorized as traditional investing.
The amount of investment products is literally in the millions. The may want re-evaluate this question. Maybe they are asking for types or categories of investments but we would still be talking about hunreds of answers. Maybe a top five or 10?
investment
Definition 1
In finance, the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means the use money in the hope of making more money.
Definition 2
In business, the purchase by a producer of a physical good, such as durable equipment or inventory, in the hope of improving future business.
Charles Schwab has a good assortment of Investment products on its site: