Investment
Investment 101
Investment is an activity in which one spare one portion of his income to be saved and preserved for future needs. The simplest form of investment is also called saving in which a portion of income is spared for future needs and aside from the consumption portion, is saved in separate or even concrete form of saving. There are many kinds of investment methods that human created to preserve their assets. They might invest in concrete form of investment such as land, gold, or other real goods investment while some also prefer to invest their money in form of securities and shares. In this modern age, investment might also mean an activity in which assets are turned to be multiplied in amount rather than just being preserved for financial needs. However, this type of investment is classified as risky investment in which the chance to gain profit as well as to lose the overall investment is equal and possible.
investment is also referred as the commitment of funds through collateralized lending, or making a deposit into a secured institution. In contrast to investment; dollar cost averaging, market timing, and diversification are phrases associated with speculation. Investments are often made indirectly through intermediaries, such as banks, Credit Unions, Brokers, Lenders, and insurance companies. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals. The individuals, called the investor or shareholder or stakeholder, have the right to claim the share of equity from the investment which is collected.