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DO YOU KNOW ABOUT INVESTMENT

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. The manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: managers determine the assets that the business enterprise obtains.

These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial. 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. 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. 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 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.

WAN MOHD HIRWANI WAN HUSSAIN is an accomplished writer who specializes iN debt management. Visit his blog for more information at production
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