
MEANING
The term “investment” is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset. A history of investment property shows that allowing others to rent something you own is a wonderful money making enterprise.
From around 2500 BC to 1800 BC, cuneiform came into use extensively, especially for financial transactions. Cuneiform is the writing on clay tablets, with a reed used as a stylus. During this period in Mesopotamia, there was a substantial amount of economic activity: agriculture, crafts, ranching, trading, etc. The first documented bond transactions have been documented by cuneiform, where silver has been lent out to a business, and that loan has been transferred to another individual. In addition, the earliest stock or share transactions have also been documented in cuneiform, for funding maritime trade expeditions.
An investment strategy helps investors stay on target for their individual financial goals. It also helps protect investors from making emotional, and sometimes irrational decisions during volatile markets. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial.
FINANCE
In finance, investment=cost of capital, like buying securities or other monetary or paper (financial) assets in the money markets or capital markets, or in fairly liquid real assets, such as gold, real estate, or collectibles. Valuation is the method for assessing whether a potential investment is worth its price. Returns on investments will follow the risk-return spectrum.
As an investor you need to understand fully the movement and the implication of the investment clock. Once you have lived through an investment cycle and seen the recurring nature of the booms and the busts and the rises and the falls, then you will become a better investor because you will understand the importance of timing in your investment decisions.
REAL ESTATE
The money is used to buy property and it hold it until gain profit from it and sell it to get higher profit. There is capital risk that involved in real estate transaction. Unlike other economic or financial investment, real estate is purchased. The seller is a vendor and the purchaser is called a buyer in the real estate
ECONOMICS
In economics, investment is the production per unit time of goods which are not consumed but are to be used for future production.
Examples include tangibles (such as building a railroad or factory) and intangibles (such as a year of schooling or on-the-job training). Thus investment is everything that remains of production after consumption, government spending, and exports are subtracted.
The risk to those who stick all their savings in money-market funds or fixed-income funds is lower returns than those typically earned by investing in stocks. “The pile doesn’t grow very fast,” said Alicia H. Munnell, director of the Boston College center. The risk for those with nothing but stocks is that a couple of bad years in the market close to retirement might put retirement plans on hold.
TYPES OF OTHER INVESTMENT
Types of financial investments include shares, other equity investment, and bonds (including bonds denominated in foreign currencies). These financial assets are then expected to provide income or positive future cash flows, and may increase or decrease in value giving the investor capital gains or losses.
CONCLUSION
As the conclusion, we can conclude that investment in very important for get long term profit and money. Always have knowledge about what investment that you involved and try to be patient in making money from it.
Good luck in your investing