INVESTMENT OBJECTIVE
It is going to be my first blog on investment. So whenever anyone asks me why I am so enthusiastic about investment and the answer always is it is my favorite area of study and I find myself comfortable whenever I get chance to discuss on it. So I have decided to share my view with you people.
What is investment?
So the first question must be what is investment? The term investment can be defined from different aspects of study. The basic definition is like that, investment is an expense made by individual or a group in order to have return in future. The return can be more or less. Different areas of study define investment in different ways. From business management point of view, it is those kind expenses, made in fixed assets like machinery Furniture, land, building in order to have better service. From financial point of view, it is the part of expense in securities or shares or bonds to get optimum return. As per personal Investment theory it is the implementation of money to buy shares, bond etc. Real estate Investment can be defined as the money spent on buying of real assets that means buildings, flat, houses etc.
Objectives of investment
The next thing is that the objectives of investment. The main objectives of investments is safety, income, growth of capital. Now I try to clear these to you.
Perhaps it is true that there nothing called safety in investment but if we can take effective measures to minimize the level of possible loss. That means we can invest in safe areas of investment.
Secondly, if there is no way of earning more then people definitely won’t think of investment. So the element of earning more makes people to think about investment. In order to earn more people invest more.
Growth of capital is related with common stock which provides low yield but have that chances of increase in the value considerably. For this reason common stock is highly speculative in nature and the value is dependent on the unpredictable future. Blue chip stocks have that ability to provide more safety.
What is investment?
So the first question must be what is investment? The term investment can be defined from different aspects of study. The basic definition is like that, investment is an expense made by individual or a group in order to have return in future. The return can be more or less. Different areas of study define investment in different ways. From business management point of view, it is those kind expenses, made in fixed assets like machinery Furniture, land, building in order to have better service. From financial point of view, it is the part of expense in securities or shares or bonds to get optimum return. As per personal Investment theory it is the implementation of money to buy shares, bond etc. Real estate Investment can be defined as the money spent on buying of real assets that means buildings, flat, houses etc.
Objectives of investment
The next thing is that the objectives of investment. The main objectives of investments is safety, income, growth of capital. Now I try to clear these to you.
Perhaps it is true that there nothing called safety in investment but if we can take effective measures to minimize the level of possible loss. That means we can invest in safe areas of investment.
Secondly, if there is no way of earning more then people definitely won’t think of investment. So the element of earning more makes people to think about investment. In order to earn more people invest more.
Growth of capital is related with common stock which provides low yield but have that chances of increase in the value considerably. For this reason common stock is highly speculative in nature and the value is dependent on the unpredictable future. Blue chip stocks have that ability to provide more safety.
0 comments:
Post a Comment