Investment and its types

What is investment?

Everyone in the world will always love earning money to lead a luxurious life. So, we will be searching the ways to earn money. The best way to make money is Investment .An investment is acquiring an asset or a thing with the hope that it will definitely generate some profits. The investment can be defined in an economic sense that it is just a purchase of an asset which has no value today, but will generate much wealth in the future and in finance, investment is the purchase of a monetary asset which will generate more wealth in the future or it can be later sold at a higher rate to get profits.

Investment and economic growth:

The growth of the economy can be improved with the use of investment at the business level. For example, when a company purchases an equipment for use and the production rises with the help of the purchased equipment, then the company will definitely yield profits. Thus the growth of the economy gets increased.

Investment banking:

An investment bank is the one that will provide the various services which will be needed for the business to meet the profits. It does not include the traditional banking of consumers. It will focus only on the investment vehicles like trading with QProfit System. It will also provide the options for the purpose of using the services.

Types of investment:

There are three types of investment. They are listed below.

  1. Ownership investments
  2. Lending investments
  3. Cash equivalents

Ownership investments:

Ownership investments are the commonly using investment type. This is the first word when all people think about the word investment.  This type is so volatile and the profitable investment type. Some examples of ownership investments include stocks, real estate, valuable objects, business, etc…

Lending investments:

In lending investments, the investors are the bank. It will give more profit when compared to ownership investment but the risk in this type of investment is very low. When a company sets up a bond with certain amount and with the certain of time, the company can earn twice or thrice as a profit from the amount set up for the bond.

Cash equivalents:

These are the investments which can be easily converted into cash. Here, the risk is low and also the return profit is very less. These are more liquid than the other two investment types.

Conclusion:

Thus conclude by saying that investment is a very good way to save our money by putting in a valuable asset and getting more wealth in the future. So, I personally suggest investment is a very good business for everyone.