A term "investment" stands for an asset that is held by an investor to get profitable returns. In finance, an investment is a monetary asset, which may be bought with a plan to provide income in the future or sold later at a higher price. In the most general sense, the process of investing represents putting funds to work to generate income and increase value over time. This process includes buying bonds, stocks, depositing money in a bank with a particular interest rate, and putting money in the currency market.
The main institutions which help a person or an entity to start investing are investment banks and brokers. Their fields of interest are trading and asset management. An investment bank is responsible for underwriting debt and equity securities for a company, takes part in the sale of securities and organizing M&A deals. A broker is a company, which makes a connection between an individual and the market. Through brokers, a person can invest in the interbank market (Forex).
2020-07-23 • Updated