Attributes of Investments

So what is investing?

When you decide to invest you must find an asset to put the money you worked hard for into, in the expectation of gaining a return. The organization in which you invest, whether it is a company or a government entity, offers you the prospect of a future benefit in exchange for the use of your funds.

So what does all that mean?

That means you are giving a business your money in exchange for equity or ownership stake in the company.

These companies compete in the market for the use of your funds, similar to retailers and how they compete for customers’ dollars by offering a wide variety of products with different features and benefits. Organizations attempting to raise funds from investors also offer a wide variety of investments with different attributes. Because of this, there are investments of every type are available. Some investments are virtually zero-risk such as savings accounts at banks, however, in recent years they have offered next to nothing in returns... hanging just above 0%. Then there are shares of common stock in high-risk companies that might triple in value in a short time.

The investments you choose will depend on several important factors. These are your resources, your goals, and your willingness to take risk. You have to have resources to fund your investing account. You have to set goals and stay in tune with the market and most of all you have to be able to take risk.