Investment is the best way how to make money while you sleep. Labour is only for poor and stupid people. Be smart and be an investor. Start to invest today and change your future.
What does investing mean?
Investing is defined as the act of committing money to an endeavor with the expectation of obtaining an additional income or profit.
The basic goal of any business is income or profit. Every entrepreneur starts a business with a vision of creating a product or service, which they then sell to consumers, or other companies, or the state.
The goal of investing is to put your money to work in one or more types of investment vehicles in the hopes of growing your money over time.
To invest is to provide money to a company that will use that money to implement business ideas and plans to create added value and profit.
Two crucial forms of investment follow from these statements. Investing is just buying a stock or buying a bond. Other financial instruments are usually speculation.
What Is a Stock?
A stock is a security that represents the ownership of a fraction of a corporation.
This entitles the owner of the stock to a proportion of the corporation’s assets and profits equal to how much stock they own. Units of stock are called “shares.”
Stocks are bought and sold predominantly on stock exchanges, though there can be private sales as well, and are the foundation of many individual investors’ portfolios.
These transactions have to conform to government regulations which are meant to protect investors from fraudulent practices. Historically, they have outperformed most other investments over the long run.
What is a Bond?
Bonds are issued by governments and corporations when they want to raise money.
By buying a bond, you’re giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year.
Unlike stocks, bonds issued by companies give you no ownership rights. So you don’t necessarily benefit from the company’s growth, but you won’t see as much impact when the company isn’t doing as well, either—as long as it still has the resources to stay current on its loans.
Bonds, then, give you 2 potential benefits when you hold them as part of your portfolio: They give you a stream of income, and they offset some of the volatility you might see from owning stocks.
Why should everyone invest?
Investing is more realistic than many can imagine. By investing fairly, as described in the previous lines, you place money in real physical assets, in real companies whose products and services you encounter daily.
You either become a co-owner of corporations or you lend them money. In both cases, these are large companies with a successful business model. And that is the basic genius of investing.
Entrepreneurship is the most common way to get to the property, to become financially independent and rich.
The chances that anyone will be able to build a large successful company is low.
They will be able to create a multinational company traded on world stock exchanges with an annual turnover of the order of several billion is slim.
You don’t have to set up a new Facebook or Amazon to be financially secure. The market economy thought of everyone. You don’t have to be a founder of a growing company or an entrepreneur.
The basic rule is: Spend less money than you earn.
Our other articles about investment: