In finance, investment is putting money into an asset with the expectation of capital appreciation, usually over the long-term future. This may or may not be backed by research and analysis. Most or all forms of investment involve some form of risk, such as investment in equities, unit trust, property, and even fixed interest securities which are subject, inter alia, to inflation risk. In contrast putting money into something with a hope of short-term gain, with or without thorough analysis, is gambling or speculation. This category would include most forms of derivatives, which incorporate a risk element without being long-term homes for money, and betting on horses. It would also include purchase of e.g. a company share in the hope of a short-term gain without any intention of holding it for the long term. Hence dear Malaysians, know that get rich schemes, mlm, ponzi schemes, schemes that promises illogical returns and even stocks speculating are not investment.
Posted on: Mon, 01 Jul 2013 23:41:17 +0000
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