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Article Review On Investments And The Investment Process Essay

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Investments and the Investment Process
By Nic Thomas | Submitted On October 19, 2013

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Most people are already investors. If they have any money in a savings account, that is already one investment they have. An investment is any vehicle in which funds can be placed with the expectation that it will generate positive income or increase in value. Returns are received in two forms: current income and increased value. For example, a savings account provides current income through interest payments. Meanwhile, a share of common stock that is purchased as an investment is expected to increase in value from the time its purchased to the time it is sold. Cash by itself or a no-interest checking account is not considered an investment as it fails to generate any income or increase in value.

Types of Investments

When you invest, the company or government entity in which you invest in, offers an expected future benefit in exchange for your funds. These organizations compete for your funds. Investors will invest in the organization that they judge to be better than what the competitor offers. Different investors will judge benefits differently. Because of

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