Investment meaning
Investment types
MCQ
Stock
Real estate
Precious object
business
Bond
Certificate of deposit
Money market fund
Mutual funds
Exchange traded fund
3. Investment definition is
an asset acquired or
invested in to build
wealth and save money
from the hard earned
income or appreciation.
Investment meaning is
primarily to abeain an
additional source of
income or gain profit
from the investment
over a specific period of
time.
meaning of Investment
5. “
1.Stock
Investing in stocks means owning a portion of
a company. This means that you have a voice
at the shareholder’s meetings, and the amount
you gain depends on your shares in the
company.
There is a drawback in this kind of investment.
Stocks are very unstable and you are not
guaranteed anything when you purchase .
Capital gains, on the other hand, are the profits
you get when you sell your stocks at price
higher than how much you paid for it.
6. Real estate investing is buying any real
estate properties (lots, houses,
apartment units, etc.) then
selling them or renting them out
for profits. Any property you buy
with an intention of earning money
with it is real estate investment.
However, the house where you are
living in is not an investment since
it is fulfilling a basic need.
7. 3.Precious Object
Anything valuable purchased with an intention of
reselling for profit can be considered an
investment. Things such as gold, jewelry,
artwork (especially by renowned artists), signed
albums by popular singers, sports equipment or
sportswear singers, sports equipment or
sportswear signed by legendary athletes, or
even unopened lego sets. Like real estate
properties, their values appreciate overtime but
some factors might cause reduction to the final
profit in the future.
8. Another type of ownership
investment is business
investments. In this kind of
investment, you are putting not
only your money but also your
time and effort to the business.
You create develop, run ,and
expand a business’ services,
products, or products using your
money and time with the hopes
of earning a profit in the future.
9. 5. Bond
A bond is actually a broad term
referring to many kinds of
investments. Here, you lend
money to an institution and they
pay you back with a certain
amount of interest depending on
when the contract dictates.
There are different types of
bonds you can choose from the
bond market place. They are
corporate bonds, municipal
bonds, agency bonds , and
asset- backed securities.
10. This is a kind of savings bank account.
Here you deposit your money as a time
deposit, meaning you commit your money to
the bank for a length of time.
Unlike in regular savings accounts,
you are not allowed to withdraw
your money unless unit the contract says
otherwise.
11. 7. Money Market Found
This is short-term, low – risk, low
– reward type of investment.
Since the return is relatively low,
this is not an option of long-term
investors aiming financial
security in the future when they
retire from their job. Another way
to put it is that, money market
funds are “as good as cash”.
12. 8. Mutual Funds
A mutual fund is a combination of
investment of different investors
investing in stocks, bonds , money
market funds or any asset. It is
organized by a money manager; he or
she invests the capital with the hopes
of gaining profit.
Each shareholder gains or loses
money proportional to their share in
the funds.
13. 9. Exchange Traded Fund (ETF)
Now that you know how mutual fund
works, it should not be hard for you to
understand exchange traded funds. It is
very similar to mutual funds; it consists a
number of investors , can be invested in
stocks, bonds, or any kinds and
combination of assets, and each investors
buy or own share which represents their
part of interest when the capital earns
profit.