investing in shares and other securities

What is investing?

Investing is a method used to increase the wealth of an individual or business. These investments can range from short to long term periods and each investment carries a risk and corresponding rate of return.

Note: “Wealth” indicates more than just money, because in investments there are more assets to consider in increasing in value than paper money.

Why invest money?

In basic economics there is occurrence called the “time value of money effect”. This effect causes the value of money to decrease over time. E.g. $100 in 5 years will be able to buy less than what it does now.

More importantly, another reason which is common to most people for reasons to invest is to save money. Even though many people do invest in a simple savings account, many other investments are available as well.