Behavior Of Committing Money, Property For Future Income - 275 Words

Investment Refers To The Behavior Of Committing Money Or Property For Future Income (Coursework Sample) Content: 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 investmentThe following era the major characteristics to consider while investing:Growth potentialIncome yield Liquidity The risk associated with your investment.Investment consideration factorsTerm of the investmentInvestment riskState of the economyDoes 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 collectiblesCollectibles do not have a ready market unlike other assets, their quality and originali ty 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 optionsThe 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...