Investments

on

 INVESTMENTS


An interesting topic that interests many people today is investing.We must realize:

  • its great value
  • how it affects the economy of a country,
  • how it can help us invest,
  • how to use it wisely.



Lets start with understanding the definition of investing:


Investing is a way to grow your money over time by putting it to work in financial instruments such as stocks, bonds, and mutual funds. Unlike saving, investing involves taking on some risk, but it also has the potential to earn higher returns over the long term.

 

 

The value of investing keeps rising, especially nowadays because from time to time price/value keeps rising.


For example, types of investments to consider:

  • real estate,
  • CDs,
  • annuities,
  • cryptocurrencies,
  • commodities,
  • collectibles, and
  • precious metals 

Investing and market prices are conected instantly.A theoritical example of where do market prices come from is:

Imagine an auction where buyers and sellers come together to exchange products. Buyers look over the products and the bidding begins. 


  • Prices are likely to be higher if there are many buyers in the room and lower if there are few. Prices are likely to be higher if there are only a few sellers in the room and lower if there are many. 
  • So the number of buyers in the room and the number of sellers in the room influence the price of the products. In addition, buyers' willingness and ability to buy will be influenced by their incomes, their tastes, conditions at other auctions for other products, and their expectations about the price and availability of similar products in the future. 
  • Sellers will be influenced by their costs of production. They can afford to sell less costly items at lower prices and higher cost items only at higher prices.



  • All investments carry some degree of risk.
Stocks, funds, mutual funds and exchange traded funds can lose value even their entire value if market conditions sour. Even conservative, insured investments, such as certificates of deposits issued by a bank or credit union, come with inflation risk. That is, they may not earn enough over time to keep pace with the increasing cost of living.

Can investments leave you debt?


The price of a stock can fall to zero, but you would never lose more than you invested. Although losing your entire investment is painful, your obligation ends there. You will not owe money if a stock declines in value. For these reasons, cash accounts are likely your best bet as a beginner investor.

How can you invest money without many risks in simple steps?

  1. Start saving money to invest from your money as soon as possible.

  2. Understand how much money you should and can invest.

  3. Open an investing account.

  4. Take some time thinking:how much money you need to reach and in how much time.

  5. Decide whether you should invest in stocks and in what business you should buy bonds from.

  6. Lastly, always have in your mind that you need to be wise and understand what is better for you and your savings.






glossary :
  1. real estate:Real estate is defined as the land and any permanent structures, like a home, or improvements attached to the land, whether natural or man-made. Real estate is a form of real property.
  2. CDs: A credit default swap (CDS) is a contract between two parties in which one party purchases protection from another party against losses from the default of a borrower for a defined period of time.
  3. annuities:An annuity is a written contract typically between you and an insurance company in which the insurance company makes a series of regularly spaced payments to you in return for a premium or premiums you have paid.
  4. cryptocurrencies:Cryptocurrencies are digital tokens. They are a type of digital currency that allows people to make payments directly to each other through an online system. 
  5. commodities:A commodity is any useful or valuable thing, especially something that is bought and sold. Grain, coffee, and precious metals are all commodities. 
  6. collectibles:A collectible is an item worth far more than it was originally sold for because of its rarity and popularity, as well as its condition. Collectibles aren't always as common or as great an investment. The term collectible is sometimes applied to new items that have been mass-produced and are currently for sale.
  7. precious metals:Precious metals means gold, silver, or metal of the platinoid group, in the unmanufactured state, and all ores containing such metal.
  8. stocks:Plain and simple, stock is a share in the ownership of a company. 
  9. bonds:A bond represents a promise by a borrower to pay a lender their principal and usually interest on a loan. Bonds are issued by governments, municipalities, and corporations.
  10. mutual funds:A mutual fund is a pooled collection of assets that invests in stocks, bonds, and other securities. 







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