2. AN INVESTMENT IS AN
ACTIVITY IN WHICH EVERY
PERSON IS INTERESTED TO
INVEST MONEY IN ORDER TO
EARN REGULAR RETURN.
AMONG SEVERAL AVENUES
OF INVESTMENT,THE
INVESTMENT IN A SECURITY
(EQUITY ,BOND) HAS
ATTRACTED MOST OF THE
ANALYSTS.
8. INVESTMENT IS REGARDLESS OF PEOPLE’S
EDUCATION, STATUS,OCCUPATION,
FAMILY BACKGROUND,
HENCE ATTRACTS ALL.
MAJORITY OF INVESTORS INCUR LOSSES
THOSE WHOINCUR LOSSESDO NOT MANAGE THEIRINVESTMENTSCIENTIFICLLY ,
INSTEADTHEY FOLLOWOTHERSBLINDLY .
9. INVESTMENT V/S SPECULATION
INVESTMENT
• RISK
A TRUE INVESTOR
GENERALLY COMMITS HIS
FUNDS TO LOW RISK
INVESTMENT
• TIME PERIOD
LONG TERM IN NATURE.
(E.g 2 YEARS, 3YEARS)
SPECULATION
SPECULATOR IS OFTEN
PREPARED TO TAKE HIGH
RISK IN ORDER TO GET HIS
RETURNS
SHORT TERM IN NATURE
(E.g 3 MONTHS )
10. INVESTMENT
• MOTIVE
STEADY FLOW OF INCOME
& CAPITAL GAINS ALSO
• STABILITY OF INCOME
VERY STABLE
SPECULATION
• ONLY TO HAVE CAPITAL
GAINS RATHER THAN
STEADY FLOW OF
INCOME.
UNCERTAIN
11. INVESTMENT
• SOURCE OF INCOME
EARNINGS OF ENTERPRISE
SPECULATION
• CHANGE IN MARKET
PRICE
14. RISK
1. VARIES FROM INVESTMENT TO INVESTMENT
2.INVESTOR SHOULD INVEST ITS MONEY IN SUCH A WAY
THAT RISK IS MINIMISED AND RETURN MAXIMISED.
SAFETY
EVERY INVESTOR MUST ENSURE SAFTY OF HIS INVESTMENT
.CAPITAL SHOULD BE PAID BACK WITHOUT LOSS OF VALUE
15. LIQUIDITY
1. AN INVESTMENT WHICH IS EASILY MARKETABLE
IS SAID TO BE POSSESSING LIQUIDITY.
2.AN INVESTMENT IS SAID TO BE HIGHLY
MARKETABLE IF
IT CAN BE TRANSACTED QUICKLY
COST OF TRANSACTION IS LESS