Business Investments Essay Example | Topics and Well Written Essays - 1000 words

Business Investments - Essay ExampleWhat does it mean to invest? During our grandparents time, it was c completelyed saving for a rainy day, which is exactly what investment doer to the personal investor, with all its implications about intending it for a future time of need. However, instead of putting that nest egg under the mattress or burying it in a metal can in the yard, where it remains stagnant, savings nowadays are placed either in a savings or time deposit with the bank, modify it to the government through government securities, or making it available for business through stocks or bonds things we call financial assets. It could also be used to leverage land, jewels or works of art, things we call real assets, which grow only more valuable with time.Sometimes, investors prefer to place their savings in one asset, such as a savings deposit. Such a plan may be simple and straightforward, but it has all the disadvantages of the proverbial eggs-in-one-basket drop the bask et and you lose all your eggs figuratively speaking, that is. The prevailing wisdom is to put some eggs each in several baskets that is, to put part of ones savings in each of several alternative investment vehicles. Each vehicle runs in its own way. Some, interchangeable Mini cars, are safe but get int go very fast some, like Ferraris, race like the wind but tend to crash at the hands of an inexperienced driver. Some, like BMXs, are quick to sell off for cash, while others, like BMWs, take time and effort and sometimes a middleman to liquidate at a ethical price.Lets take a look at these vehicles, which are also called instruments because they are used to realize future goals. At present, your coin is in some sort of deposit account, maybe a savings or time deposit. This is the safest place you could keep your money in. Unfortunately, it isnt a good investment at all. The best savings account interest rate offered at present is 1.78%