Financial M1

Question 1

What is the meaning of investment?

Answer 1

Allocation of money or capital with the expectation of generating income or profit in the future.

Question 2

What investment involves

Answer 2

It involves the purchase or acquisition of assets or financial instruments with the goal of generating returns over time rather than immediate consumption

Question 3

What is the typical expectation in investment?

Answer 3

Investments are typically made with the expectation that the assets will appreciate in value, generate income through interest, dividends, or rent, or provide other financial benefits over time.

Question 4

what are the key points of investment?

Answer 4

1. Asset ownership
2. Risk and return
3. Time horizon
4. Diversification
5. Liquidity
6. Income and appreciation

Question 5

What is the meaning of asset ownership?

Answer 5

When you make an investment, you acquire ownership or a stake in an asset. This asset can take various forms, including stocks, bonds, real estate, commodities, mutual funds, or business ventures.