Why Invest?
... . But if the asset or instrument is not properly analyzed for its risk and potential benefits with the real possibility of even the loss of the principal invested, and yet investment is made, then this is speculation and not investment. There is a difference in what investments are in economics and finance. In economics, investment is made on real assets that are productive. This could be a factory, machinery or even a house. Or it could be in such intangibles as education or training. In finance, investment is made in financial assets which include investment in bank deposits, capital markets, money markets ... Investment is central to business management as well as finance and economics. Instead of consuming the resources, when these resources are allocated for the creation of future benefits, then such allocation is called investment. Earning of profit and future income is the basic motive for investment. Assets that fulfill these are the objects of such investments by individuals or organizations. Moreover it ...
Tags: banks | investments | investing | finance | business | Forex |
Tags: banks | investments | investing | finance | business | Forex |