 ]"Investment
has different meanings in finance and economics.
Finance investment is putting money into something
with the expectation of gain, that upon thorough
analysis, has a high degree of security for the
principal amount, as well as security of return,
within an expected period of time. In contrast
putting money into something with an expectation of
gain without thorough analysis, without security of
principal, and without security of return is
speculation or
gambling. As such, those shareholders who fail
to thoroughly analyze their stock purchases, such as
owners of mutual funds, could well be called
speculators. Indeed, given the efficient market
hypothesis, which implies that a thorough analysis
of stock data is irrational, all rational
shareholders are, by definition, not investors, but
speculators. Investment is related to
saving or deferring
consumption. Investment is involved in many
areas of the
economy, such as
business management and
finance whether for households, firms, or
governments."
Source:
Wikipedia |
