What Is Investing? How Can You Start?
Investing is the process of buying assets that increase in value over time and provide returns in the form of income payments or capital gains. In a larger sense, investing can also be about spending time or money to improve your own life or the lives of others. But i n the world of finance, investing is the purchase of securities, real estate and other items of value in the pursuit of capital gains or income. How Does Investing Work? In the most straightforward sense, investing works when you buy an asset at a low price and sell it at a higher price. This kind of return on your investment called a capital gain. Earning returns by selling assets for a profit—or realizing your capital gains—is one way to make money investing. When an investment gains in value between when you buy it and you sell it, it’s also known as appreciation. A share of stock can appreciate when a company creates a hot new product that boosts sales, increases the company’s revenues and raises the ...
