Write on essay about the principales of investment
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Essay on the Meaning of Investment:
Essay on the Meaning of Investment:Investment is the employment of funds with the aim of achieving additional income or growth in value. The essential quality of an investment is that, it involves ‘waiting’ for a reward. It involves the commitment of resources which have been saved or put away from current consumption in the hope that some benefits will accrue in future. The term ‘Investment’ does not appear to be as simple as it has been defined.Investment has been categorized by financial experts and economists. It has also often been confused with the term speculation. The following discussion will give an explanation of the various ways in which investment is related or differentiated from the investments. Investments in this form are also called ‘Financial Investments’.From the point of view of people who invest their funds, they are the suppliers of ‘Capital’ and in their view, investment is a commitment of a person’s funds to derive future income in the form of interest, dividends, rent, premiums, pension benefits or the appreciation of the value of their principal capital.To the financial investor, it is not important whether money is invested for a productive use or for the purchase of second hand instruments such as existing shares and stocks listed on the stock exchanges. Most investments are considered to be transfers of financial assets from one person to another.The nature of investment in the financial sense differs from its use in the economic sense. To the economist, ‘Investment’ means the net additions to the economy’s capital stock which consists of goods and service that are used in the production of other goods and services.The term investment implies the formation of new and productive capital in the form of new construction, new producers’ durable equipment such as plant and equipment. Inventories and human capital are included in the economist’s definition of investment.
investments. Investments in this form are also called ‘Financial Investments’.From the point of view of people who invest their funds, they are the suppliers of ‘Capital’ and in their view, investment is a commitment of a person’s funds to derive future income in the form of interest, dividends, rent, premiums, pension benefits or the appreciation of the value of their principal capital.To the financial investor, it is not important whether money is invested for a productive use or for the purchase of second hand instruments such as existing shares and stocks listed on the stock exchanges. Most investments are considered to be transfers of financial assets from one person to another.The nature of investment in the financial sense differs from its use in the economic sense. To the economist, ‘Investment’ means the net additions to the economy’s capital stock which consists of goods and service that are used in the production of other goods and services.The term investment implies the formation of new and productive capital in the form of new construction, new producers’ durable equipment such as plant and equipment. Inventories and human capital are included in the economist’s definition of investment.The financial and economic meaning of investment are related to each other because investment is a part of the savings of individuals which flow into the capital market either directly
investments. Investments in this form are also called ‘Financial Investments’.From the point of view of people who invest their funds, they are the suppliers of ‘Capital’ and in their view, investment is a commitment of a person’s funds to derive future income in the form of interest, dividends, rent, premiums, pension benefits or the appreciation of the value of their principal capital.To the financial investor, it is not important whether money is invested for a productive use or for the purchase of second hand instruments such as existing shares and stocks listed on the stock exchanges. Most investments are considered to be transfers of financial assets from one person to another.The nature of investment in the financial sense differs from its use in the economic sense. To the economist, ‘Investment’ means the net additions to the economy’s capital stock which consists of goods and service that are used in the production of other goods and services.The term investment implies the formation of new and productive capital in the form of new construction, new producers’ durable equipment such as plant and equipment. Inventories and human capital are included in the economist’s definition of investment.The financial and economic meaning of investment are related to each other because investment is a part of the savings of individuals which flow into the capital market either directly Investments are both important and useful in the context of present-day conditions.
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