Meaning, Investors and Investment stock market terms

The cash inflow aided to start a business model or to further extend it, is called as investment. The persons who made investment are called investors. In view of stock markets the term ‘investment’ mostly refers to long-term positions.

Unlike credit or loans, investment was an evolved technique that involves ‘Sharing’. We pay back credit at bounded interest rate irrespective of profits or losses in business, credit suppliers not involves in our business decisions. But in an investment process everything is shared between investors, which may be business decisions, profits or losses.

The stock markets are one type of investment enhancers, that oppurtunize investment of even small money from public into large companies. The buying of shares (equities) is one of well-known prospect offering by stock markets. Apart from the equities, wide range of investment opportunities is offering by stock exchanges like derivatives, mutual funds, commodities and currency trading etc.

Investment is a best process to make more money than simply savings, but investment involves risk. Hence enough care should be taken while investing. Stock markets are one of the investment opportunities available, but they are more popular and preferable than other traditional investments.

Here is a comparison between traditional Property investment and Stock market investment:-
Property Investment: we may not have complete knowledge on place we want to buy an estate. Information about that site may not available or little available on media and web. Large amount of money is required at a time. Buying and selling of property is very complex.
Stock market investment: large number of magazines, websites are available to discuss on best shares to invest. You can start stock market career with small money. Buying and selling of shares is very easy and instant task.

6 comments:

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