Investing for Beginners .EU, investing

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Thomas Hood

All About Investing

2011 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:

Investment or Investing:  Thorough analysis, money security, very minimal risk

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:

 

Right Time to Stop Investing

Spending and Investing Balance Extremes

Investment in Your Life

Practice Is the Only Way to Investment Pro

 





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