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Investment is?
The commitment or funds or capital to one or more assets that will be held over some future time period.

Reason

1. Source of income

2. Capital preservation

3. Capital appreciation

Relationship between Risk & Return

High returnHigh return

Low risk Low return

Main function of financial system

Save money dor future use

Manage risks

Raise equity capital

4 types of market

1. Spot

2. Money

3. Primary

4. Traditional

# data[].attributes.body
Investment:-
The commitment of funds or capital to one or more assets that will be held for future consumtion

Reasoning for investment:-
- Source of income
- Capital preservation
- Capital appreciation or growth

Main function of financial systems:-
- Save money for future use
- Borrow money for current use
- Manage risk

Risk & Returns Relationship:-
- High risk, High return
- Low risk, Low return

Securities are classified into:-
- Fixed income
- Equities
- Public
- Private

Contracts are classified into:-
- Forward
- Futures
- Swap
- Option

# data[].attributes.body
Investment - commitment of funds or capital to one or more assets that will br held for future consumption

Reasons :

Source of income

Capital preservation

Capital appreciation or growth

Relationships between RISK & RETURN

High risk High return

Low risk Low return

Main functions of Financial Systems

Save money for future

Manage risks

Raise equity capital

How securities are classified?

Fixed income

Equities

Public

Private

How contracts are classified?

Forward

Futures

Swap

Option

Future vs forward contracts

Future : Standardised, clearinghouse guarantees performance

Forward : customized,counterparty risk

# data[].attributes.body
-invesment can be defined as a commitment of fund or capital to one or more assets
Reasons for investment
-source of income
-capital preservation
-capital growth
Risk and return
-different assets have different risk
-investors should choose from risk preferences

Main function
-save money for future use
-borrow money for current use
-manage risk

Market classification
-cat 1 (spot market)
-cat 2 (primary market)
-cat 3 ($ market)
-cat 4 (traditional investment)

Securities
-fixed income
-equities
-private

Contracts
-future
-swap
-forward
Pooled investment
-mutual funds
-trust
-depositeries
-hedge funds
Future contracts
-standardized

Forward contract
-customized

Swap contract
-interest rate
-commodity
-currency
-equity
Options
-put
-call

# data[].attributes.body
Investment: commitment of funds or capital to one or more assets that will be held over some future consumption.

Reasons for investment:

Source of income.

Capital preservation.

Capital appreciation or growth.

Investor should choose their investment based on their risk preference.

Main functions of the Financial System:

Manage risk.

Raise equity capital.

Borrow money for current use.

Save money for future use.

Trade on information.

Asset are classified into 5:

Security.

Currencies.

Contracts.

Commodities.

Real assets.

Securities are classified into 5:

Fixed income.

Equities.

Public.

Private.

Pooled investment.

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Main funtions of main financial system

Save money for future use

Raise equity Capital

Manage risk

Trade on information

Reason for imvestment

Source of income

Capital preservation

Capital appreciation and growth

Types of market
Category 1

Spot market

Option market

Forward and future market

Category 2

Primary

Secondary market

Category 3

Money

Capital

Category 4

Trading investment market

Alternate investment market

Securities

Fixed income

# data[].attributes.body
Bella
Investment- funds or capital to one or more assets that will be held over some future time period.

Reason for investment ; • source of income
• capital preservation
Relation of risk and return - low risk low return
-high risk high return
Main function of the financial system;  • save money for future
• borrow money for current use
• raise equity capital

4 type market classified: •spot market
•money market
• primary market
• traditional invesment

Swap contract : interest rate
Commodity
Currency
Equity

Option to sell and call options

# data[].attributes.body
Investment is the commitment of funds or capital to one or more assets that will be held over some future time period.

Reason for investment :
1. Source of income
2. Capital preservation
3. Capital appreciation

Higher risk : Higher return

Lower risk : Lower return

Main function of financial system :
1. Save money
2. Borrow money
3. Raise capital
4.  Manage risk
5. Trade on information

# data[].attributes.body
Investment
=> the commitment of funds or capital to one of more assets that will be held over some future time period

Reason to invest

Source of income

Capital preservation

Capital appreciation

HIGH risk, HIGH return (vice versa)

Rates of Return determined by :

Money supplied by savers

Money demanded by borrowers and equity sellers.

Contracts:

Forward contracts

Futures contracts

Swap contracts

Option contracts

Other contracts

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What is an 'Investment'

An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.

BREAKING DOWN 'Investment'

The term "investment" can refer to any mechanism used for generating future income. In the financial sense, this includes the purchase of bonds, stocks or real estate property. Additionally, a constructed building or other facility used to produce goods can be seen as an investment. The production of goods required to produce other goods may also be seen as investing.

Taking an action in the hopes of raising future revenue can also be considered an investment. For example, when choosing to pursue additional education, the goal is often to increase knowledge and improve skills in the hopes of ultimately producing more income.

Investment and Economic Growth

Economic growth can be encouraged through the use of sound investments at the business level. When a company constructs or acquires a new piece of production equipment in order to raise the total output of goods within the facility, the increased production can cause the nation's gross domestic product ( GDP) to rise. This allows the economy to grow through increased production based on the previous equipment investment.

Investment Banking

An investment bank provides a variety of services designed to assist an individual or business in increasing associated wealth. This does not include traditional consumer banking. Instead, the institution focuses on investment vehicles such as trading and asset management. Financing options may also be provided for the purpose of assisting with the these services.

Investments and Speculation

Speculation is a separate activity from making an investment. Investing involves the purchase of assets with the intent of holding them for the long term, while speculation involves attempting to capitalize on market inefficiencies for short-term profit. Ownership is generally not a goal of speculators, while investors often look to build the number of assets in their portfolios over time.

Although speculators are often making informed decisions, speculation cannot usually be categorized as traditional investing. Speculation is generally considered higher risk than traditional investing, though this can vary depending on the type of investment involved.

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An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.

# data[].attributes.body
> reasons for investment;
- source of income
- capital preservation
- capital appreciation

> main functions of financial systems;
- save money
- manage risk
- raise capital equity

> 4 types market are classified;
- category 1; spot, forward and futures, and options market
- category 2; primary and secondary market
- category 3; money and capital market
- category 4; traditional and alternative investment market

> assets are classified;
- securities, currency, contract, commodities and real estate

# data[].attributes.body
investment: commitment of funds or capital to one or more assets that will be held over some future time period.

reason:
source of income
capital preservation
capital appreciation or growth

risk and return trade off (higher risk, higher return):
different assets have different feature of risk and return
choose investment based on risk preferences

main function of financial system:
save money for future use
borrow money for current use
manage risk

asset classification:
securities
currencies
contract
commodities
real ssets