QandAs: Finance

What is Investing?

Answer:
Investing is using one's money or other capital with the plan to receive back the original amount plus some after a period of time has passed. A

popular example would be investing money in the stock market.

In actuality, what an individual is doing is purchasing stock (through a broker, directly, via a mutual fund, etc.) or a small slice of a company, not in the market itself. The investor hopes that the value of that stock or ownership share will rise and they can sell it at a profit.

Investing is a far broader activity than the stock market. Children are often told that education is an investment in their future: they are spending large amounts of time now for a payoff in the future (a better job, more fulfilling career, etc.) Real estate is also considered an investment, as is purchasing gold, art, antiques or other items that will likely rise in value over time.