Investing or Investment
Investing or investment relates to either saving or deferring the consumption
of money or financial funds. The term investing or investment is a major concern
in the areas of finance, business management and economics.
The individual that chooses to invest his money is risking the savings in the hope
their will be a gain on the investment. The alternative is to store the money or
the goods produced in a safe place until a future time. Investment can be used to
produce other durable goods or lend the money or equivalent goods to another individual
and hope that earn interest or profits in return for the investment.
If the individual chooses to invest this money or equivalent goods, there are usually
four alternatives of investment:
- The individual can create a durable consumer goods for himself and hope that
the goods will lead to a better situation for himself
- The individual can create a goods and/or services to sell to others at a
hopefully profitable gain.
- The individual can lend the money to another individual and earn interest.
- The individual can invest the money into a business and acquire a share of the
business.
