Investments refer to the allocation of resources, usually money, in order to generate income or profit. This can involve purchasing assets such as stocks, bonds, or real estate, with the expectation that their value will increase over time. Investors aim to grow their wealth through various strategies, balancing risk and return based on their financial goals.
The world of investments is vast and includes different types of assets and markets. For instance, stocks represent ownership in a company, while bonds are loans made to corporations or governments. Understanding the fundamentals of investing is crucial for making informed decisions and achieving long-term financial success.