Investment Refers To The Behavior Of Committing Money Or Property For Future Income (Coursework Sample)

Investment Decisions
Name:
Institution:
Investment refers to the behavior of committing money or property for future income.
Reasons and Advantages of investment
The main investment reason is to grow your wealth through increased return. The second major reason for investment is to increase your ability to fund major purchases or projects.
Characteristics of investment
The following era the major characteristics to consider while investing:
Growth potential
Income yield
Liquidity
The risk associated with your investment.
Investment consideration factors
Term of the investment
Investment risk
State of the economy
Does investment risk matter?
Investment risk is a major consideration as it determines the return received by the investor. Investors should that define the amount of risk they are willing to bare as the higher the risk the higher the return.
Problems associated with owning collectibles
Collectibles do not have a ready market unlike other assets, their quality and originality are also had to tell hence not suitable. It also takes a long time to increase in value and that it does not provide current income but instead only increase in value.
Difference between owning investment property and owing a REIT
REITs have a heavy-fund and strategic asset flow as well as increased liquidity, there are flexible and passive in comparison to investment property.
Difference between listed options and employee options
The major difference between Employees stock option (ESO) and listed options is that ESOs are not traded as they do not have quoted value their price is rather referenced based on theoretical models.
Factors that make foreign investment more risky as compared to do...