Branch of Economics

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 Investment is the dedication of resources or assets to creating financial benefits in the form of income or profit in the future. It is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and finance no matter for households, firms, or governments. An investment involves the choice by an individual or an organization such as a pension fund, after some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives, or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time.

If you are interested in learning the fundamentals of investing, you have come to the right place. Our primary mission is to educate the people how to invest in the stock market and other investment opportunities. The information here will help you to better understand the stock trading and other investment vehicles. I will teach you how to invest your money for the greatest possible gains while reducing the associated risks in the stock market and other investing opportunities.

Types of financial investments include shares, other equity investment, and bonds. 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. Investments are often made indirectly through intermediaries, such as banks, mutual funds, pension funds, insurance companies, collective investment schemes, and investment clubs. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary.

Online investing has become very common, because of its simplicity. There are many brokers that offer possibility of investing from the convenience of your home.The only stock brokers I will cover are online discount brokers such as Sharebuilder, Ameritrade, etc. In order to trade online you have to open an account with an online broker. Number of brokers online is big, and it's getting bigger every day. This makes it hard for people to chose the one that will suite their needs the best. All of online brokers have their con's and pros, so sometimes it is hard to chose the right one.

Investing in bonds is essentially were loans are made to corporations and governments by investors. The corporation or government then makes fixed interest payments to the bond investor or a set period of time, called the term. At the end of the term, the investor gets back the original investment amount, called the principle. Investing in bonds is generally considered a more moderate form of investing. Bonds investing is not a investing vehicle they generally will produce the kinds of results that investing in individual stocks can. Still for many people investing in bonds offers a security of a nearly guaranteed return. Bonds are evaluated by third-party resources, and investors can make informed decisions based on the credibility of the government or corporation issuing the bond. 

HYIP (High Yield Investment Program) is, as the name says, program that offers a high returns on the investment. But be wary, HYIP carries an extremely high risk, and is a type of pyramid scheme. Some HYIPs promise high returns, usually around 2% per day, but in some cases much higher.Therefore it is quite obvious that 1,000% annual return on the investment cannot be made legitimately.Illegitimacy of these schemes is even more obvious when you think about one of the most successful investors, Warren Buffet, who was making around 30% return per year in his most successful period.

Stocks are essentially investments in a specific publicly traded corporation, such as Coca-Cola, or Google. Publicly traded companies issue shares of their stock to the general public. Each share represents a fractional percentage of ownership in a company. Buying and selling individual stocks is accomplished through stock market exchanges throughout the world. Trading stocks successfully requires a working knowledge of how the stock market works and what affects stock market prices. The stock market is not gambling, however there are people that use the stock market as the gambling platform. Stock prices rise and fall on company news, on earnings, and a number of other reasons.

Stock market investing creates a dilemma that every investor must face. As the best performing asset class historically, the stock market cannot be ignored as an investment vehicle. It has outperformed bonds, commodities, real estate, and gold for centuries. Unfortunately, in order to obtain these long term returns investors have to survive periodic stock market crashes. If you are not properly diversified your entire portfolio can get wiped out in a bear market. Stock market investing can be brutal indeed. For the risk averse investor who wants guaranteed returns the options are many but the performance outlook is of all slim. Generally, you must accept low rates of return which often do not even keep up with inflation. For those who can stomach the risks and invest in the stock market you should be aware that the value of your investment is out of your hands. Generally accepted theory is that individual stocks are valued based on their company’s fundamentals and outlook for revenue and earnings. 

Stock market investing has not been profitable for the average investor. Many studies have shown that just a small percentage of individual investors outperform long term stock market returns. Most do not even come close to matching it. There are 2 significant factors that lead to this finding. The primary is that most investors try to time investing in the stock market. They add to their holdings during Bull markets and sell during Bear markets. This Buy High/Sell Low pattern causes them to miss rebounds, which it is when the most profitable investors make the majority of their money. The stock market has always bounced back from crashes and downturns, usually in an explosive manner towards the upside. Missing even a few of the best days during a rebound can greatly hamper long term investment returns.

Whether its stocks, options, mutual funds, ETFs, etc., there are many investment vehicles out there to put your money in. For the beginner or intermediate investor though, some of these options should just flat out be avoided. Unfortunately, people with a financial motive often try to dupe beginner investors into using some of these investments when it is generally against the novice investor’s interest. The Stock Market and Exchange is a great alternative for the savings of people and institutions. It permits them to obtain an important profitability against other types of official markets even if it means assuming, possibly, a greater risk. The profile of the investor in the stock market is tried to achieve, having in account that there doesn’t exist any kind of universal description for them. Two types of investors are basically distinguished: according to its way of operating and according to its knowledge and financial capacity.