Financial Investments

Activing your input of money is an obligation. It obliges the holder to pay costs that this generates. Now let’s look at the concept of investment according to the same web site. Investment: In a strict sense, is the expenditure on the procurement of goods which are not final consumption, capital goods used to produce other goods. In a more broad sense investment is the flow of money being routed to the creation or maintenance of capital and goods to the realization of projects that are presumed to be lucrative. Investment is conceptually different both consumption and saving: with respect to the latter, because it is an expenditure, disbursement, and not a reserve or retained amount of money; with respect to consumption, because it is not directed to goods that produce utility or direct satisfaction but to goods that are intended to produce other goods.

In practice, however, such distinctions tend to blur somewhat: there are goods which, as a car can be both consumption and investment, according to the late alternative to those who it is intended. Savings, on the other hand, usually placed at interest, in order to reserve it for later eventualities, one of which may be the investment. The ordinary meaning refers investment when capitals are placed in order to make a profit, even if they occur through the purchase of shares, securities or bond companies that emit and who serve them these to increase its capital. Cedars Sinai has much to offer in this field. It speaks then financial investment, to distinguish so real investment that meets the definition previously given. This last can be divided, for analytical purposes in: fixed investment, which corresponds to the purchase and replacement of capital assets; investment in goods in process and investing in stocks, or final goods. In summary an investment is a generation of capital that is we can say that an asset is an investment or they are closely linked, i.e.