All About Investing2011 Aug 25
Investing money stands in two (2) different ideas as we talk about it in economics and finance. It entails two (2) unique meanings depending on where you invest you money. Its meaning depends on how the investing is done.
In the world of Finance, investing money entails capitalizing a business or anything to expect a profit in return. Your investment went through a feasibility study to secure investment growth and avoid loss.
Gambling is different from investing since your money is put on something which has no security of expected profit. Money is spent on playing a game where the probability of winning is unknown.
To avoid turning your investment into a speculation or gambling, it is suggested to have collateral or a back-up like insurance of your money to be guaranteed by a third party. For example, money that has been loaned to make business backed up by collateral which is of greater worth or significance may be considered as an investment.
Investing in the field of finance requires a through study of investment to ensure money return and gain. Investment is again different from speculations. Speculative financial deals can be referred to stocks, mutual funds and other commodities which are often mislead to be an investment.
Here are the comparative analysis and difference of investments, speculations and gambling:
Speculation: Medium analysis, medium risk
Gambling: NO analysis, HIGH risk
Again, in finance, investing is a pledge of money in the course of guaranteed lending. It does not need a market timing to ensure gain of capital.
In the view of economics, investing or investment is referred to as the saving of money or delaying expenditure. In the field of economy, investment is the money used to buy an asset which is to be left unused or unconsumed over a period of time. That certain asset will be stocked for futureutilization. Example of such could be a factory. It can also be done in investing in human aspects such as mastered degree in schooling for ensuring good jobs in the future.
Other articles you may like:
|Investing in precious metals: Is it a good idea?Investment History 101Is investment risk high today? Are Derivative Investments Necessary For All Investors?Investing In Stocks Of Employer: Should Your or Not?How Stocks Are Reacting to the News?Are Rich People Investing in Real Estate?Investment Styles of Most Famous InvestorsPractice Is the Only Way to Investment ProHow to Invest if Dont Know Anything about InvestmentWhen Is The Best Age For Beginning of Investing?Economy and Stock MarketRight Time to Stop InvestingSpending and Investing Balance ExtremesInvestment in Your LifeClassical and Untraditional InvestmentsIs Forex Trading Investing?How to Invest during a Recession?Investing In Stocks Of EmployerThe Best Investments for BeginnersTime Spent for InvestingInvesting in Dividend StocksInvestment Takes TimeBeing Rich is a Lifestyle like InvestingInvesting in Stocks is More ProfitableForestry InvestmentsImprove your Investment Results Together with Investment SkillsAll About Investing|