Investors Guide Main provisions
Posted on Nov 26, 2000 08:15:27 AM
Accumulation and investment
When investing the funds used to acquire various assets. Increase in their cost of creating income.
The fundamental difference between the accumulation of investment lies in the fact that the accumulation of money is not capital, and therefore worthless, causing damage. Impairment of accumulated funds occurs due to inflation of the currency and the world’s currencies (dollar, deutsche mark, pound, yen), and because of the risks that accompany the accumulation. The latter include the depreciation of savings (for example, gold and items from it to the worsening economic situation), reduced savings or liquidity of its total loss (the introduction of fixed prices or regulations that restrict transactions with one or another means of accumulation of either gold or foreign currency), and the risk of ruining the credit institution, which offers various savings accounts. Can cause a lot of other types of risks associated with the accumulation. But an existing list is enough to think about how reliable is this method of saving money earned.
What is the main advantage of investing compared to the accumulation, if the risks (detailed speech about them will be discussed below) exist in this case. When investing the funds used to acquire various assets. Increase in their cost of creating income. Thus, when competent investment risk policy pays a real increase in investment.
When placing the funds in various types of savings accounts, financial institutions use their discretion, paying the investor only a portion of income in the form of a predetermined percentage. When investing, all earned income to the investors in full.
Investment institutions
Investment houses (banks) are the most powerful stock market participants.
Such agencies are the most powerful stock market participants, as concentrated in their hands multi-billion dollar funds, which often allows them to determine the situation on it. They are more diversified than other investment institutions business, which reduces the risks of their investments. Typically, investment houses have a complex structure, which includes fund management companies, brokerages, funds operating in the foreign exchange market; units engaged in asset management, corporate finance, mergers and acquisitions, preparing businesses for sale and other businesses.
Investment companies enable private and corporate investors to accumulate funds for their further investment in the stock market instruments.
an investor, bond paper, market risk, portfolio, profitability,- What is the action
- Dictionary investor in the securities market
- Results for investors
- Than risk a private investor
- What is OFBU