Business Investments Essay Example | Topics and Well Written Essays - 1000 words

Business Investments - Essay representativeWhat does it mean to invest? During our grandpargonnts time, it was c altogethered saving for a rainy day, which is exactly what investment means to the personal investor, with all its implications about intending it for a future time of need. However, instead of putting that nest egg under the mattress or inhumation it in a metal can in the yard, where it remains stagnant, savings nowadays are located either in a savings or time deposit with the bank, lending it to the government through government securities, or making it available for business through stocks or bonds things we call financial assets. It could in wish manner be used to purchase land, jewels or works of art, things we call real assets, which grow only more(prenominal) valuable with time.Sometimes, investors prefer to place their savings in one asset, such as a savings deposit. Such a plan may be simple and straightforward, but it has all the disadvantages of the pro verbial orchis-in-one-basket place down the basket and you lose all your eggs figuratively speaking, that is. The prevailing wisdom is to put approximately eggs for each one in several baskets that is, to put part of ones savings in each of several alternative investment vehicles. Each vehicle runs in its own way. Some, like Mini cars, are safe but dont go very fast some, like Ferraris, race like the wind but tend to crash at the hands of an inexperienced driver. Some, like BMXs, are truehearted to sell off for cash, while others, like BMWs, take time and effort and sometimes a link to liquidate at a good price.Lets take a look at these vehicles, which are also called instruments because they are used to realize future goals. At present, your bills is in some sort of deposit account, maybe a savings or time deposit. This is the safest place you could keep your money in. Unfortunately, it isnt a good investment at all. The best savings account interest prise offered at pr esent is 1.78%