Investing 101

Investing is the act of committing money or capital to an endeavor (a business, project, real estate, etc.), with the expectation of obtaining an additional income or profit. Investing also can include the amount of time you put into the study of a prospective company.”

History of Investing –

The New York Stock Exchange(NYSE) first opened in 1792, and it remains today one of the world’s leading public market exchanges, along with NASDAQ, AMEX, and others. Most of the established banks that dominate the investing world began in the 1800s, including Goldman Sachs and J.P. Morgan. In the 1900s, the term investing was more intertwined with trading and speculating.  – Investor Gov

The income that results from investing can come in many forms, including financial profit, interest earnings, or the appreciation of the asset. Investing refers to long-term commitment, as opposed to trading or speculating (conducting a financial transaction that has substantial risk of losing all value but with the expectation of a significant gain.), which are short-term and often deal with heavy turnover and, consequently, a higher amount of risk.

How to Invest:

Types of Investments –

While a fixed income investment refers to an opportunity that brings in a set amount of interest income on a regular basis, such a bond or preferred share of a company, investments also take the form of common equity stakes. Both preferred and common company shares are forms of corporate ownership in publicly traded companies. In private equity, forms of investment also include equity stakes; however, these stakes are not traded on a public exchange.

Investing is great, but I also compare it to gambling. I always advise my customers never to have all your eggs in one basket. You’re relying 100% on the stock market. As we have seen over the last few years, the stock market has been a rollercoaster. As always be smart with your finances, and if you need help seek guidance.

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