Investing Definition and 22 Threads

To invest is to allocate money with the expectation of a positive benefit/return in the future. In other words, to invest means owning an asset or an item with the goal of generating income from the investment or the appreciation of your investment which is an increase in the value of the asset over a period of time. When you invest it always requires a sacrifice of some present asset that you own today such as time, money, or effort.
In finance, the benefit from investing is when you receive a return on your investment. The return may consist of a gain or a loss realized from the sale of a property or an investment, unrealized capital appreciation (or depreciation), or investment income such as dividends, interest, rental income etc., or a combination of capital gain and income. The return may also include currency gains or losses due to changes in the foreign currency exchange rates.
Investors generally expect higher returns from riskier investments. When a low-risk investment is made, the return is also generally low. Similarly, high risk comes with high returns.
Investors, particularly novices, are often advised to adopt a particular investment strategy and diversify their portfolio. Diversification has the statistical effect of reducing overall risk.

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  1. Field physics

    Welcome! Investing, Athletics & Physics: Exploring New Fields

    Hi I am new to the forum. I am a investor, athlete, and a "field physicist." I got a bachelors in physics and Hopefully soon can get a phD. I like to do basic experiments that demonstrates physics.
  2. bhobba

    Buy and Hold Beats Active Investing

    As some may know, I have started stock investing/trading again with two Australian ETFs, VDHG and YMAX. YMAX sells covered calls on the Australian ASX 20, while VDHG is a Vanguard fund of other Vanguard funds managed using Markowitz portfolio theory. Anyway, I decided to supplement that by...
  3. FallenApple

    Are short term liquid investing strategies better than long term ones?

    Because of the statistical nature of autocorrelation, we know that time events that are closer together are more correlated to each other than to time events that are further apart. Which makes sense because differing perturbations of complex chaotic systems can, and do, have wildly differing...
  4. rude man

    Insights A Simplified Synthesis of Financial Options Pricing - Comments

    Greg Bernhardt submitted a new PF Insights post A Simplified Synthesis of Financial Options Pricing Continue reading the Original PF Insights Post.
  5. Greg Bernhardt

    PF Investing Club: The Stock Market & Compounding Interest

    This thread was spawned off https://www.physicsforums.com/threads/financial-knowledge-all-adults-should-know.916758/ Do not act on any financial advice here before doing due diligence and meeting with a qualified financial advisor. hmmm I guess I am missing something. If I buy 1 share for $10...
  6. C

    Is Cold Fusion Making a Comeback with Serious Investment?

    I'm not sure if we are allowed to discuss the physics of so called Low Energy Nuclear Reactions (LENR), aka Cold Fusion, on this forum but I was interested to see that it may still be attracting serious investment.. At the time of writing it appears Woodford Patient Capital Trust has invested...
  7. StevieTNZ

    News Five Years On Since the Global Financial Crisis

    As outlined in this article - http://nz.finance.yahoo.com/news/anniversary-great-recession-whats-changed-145605229.html - today marks the fifth year in which the financial crisis 'started'. I quote 'started' as the initial lead up occurred when those with very terrible credit ratings were...
  8. J

    Does anyone here trades in the stock exchange? (U.S)

    Anyone who trades in the stock exchange, can I get some advice on books, websites, or any other resource to learn the basics of investing? Also is there any general tips you could give me? Thank you :confused:
  9. I

    Are Mortgage Backed Securities Still a Risky Investment?

    This link really ticked me off http://beta.fool.com/equityfinancials/2013/04/07/undervalued-financial-stock-yielding/29465/?source=eogyholnk0000001 You think we would have learned the lesson the last crash around...
  10. trollcast

    Simple Economic / Stock price model

    I'm trying to program a simple game with a handful of fictious companies on a virtual stock exchange that is semi realistic with price variations and trends over time. However I made a quick test using random functions and probabilities to produce the variations but I can't seem to strike a...
  11. E

    Investing money with PhD stipend.

    I am a senior undergrad who will be enrolling in a PhD program next semester. I haven't decided yet on the exact program, but the offers that I have received guarantee an average stipend of about $22,000 per year. I believe health insurance is also included in most packages (although I will...
  12. A

    Choosing between investing or buying now

    Homework Statement A group of students decided to lease and run a gasoline service station. The lease is for 10 years. Almost immediately the students were confronted with the need to alter the gasoline pumps to read in litres. The Dayton Company has a conversion kit available for $900 that...
  13. K

    Worth investing time to learn Workbench

    At my company no one really uses it but I know ANSYS is pushing its development. I am young in my career and I am wondering if I should just focus working in standalone or focus performing analysis from the workbench platform. Do I lose anything doing CFX or something from workbench. I know for...
  14. A

    How to Start Investing with No Experience | 17 and Beyond

    I have no experience investing in stocks or otherwise. I'm 17 and it seems a good way to help control money and have something to look forward to later in life. Where to begin though?
  15. N

    Maximizing University Savings: Is Investing in Stocks the Best Strategy?

    If so, post your portfolio. I'm currently working to increase my university savings (I'm about to finish high-school and start at uni in one year) and I think it'd be a waste to keep the money in the bank. I mean, here you get a 3% bank rent? After taxes it's actually around 2,2%, while...
  16. J

    Investing in current physics research

    This is a less scientific question than usually, but still relevant. We have been asked to quickly decide on two specific areas of current physics research in which we will later research and do an assignment on. I have gone through numerous hours of research and cannot find some...
  17. Borg

    What Are the Top Future Investments in Energy Storage Technology?

    Simple question: What do you think would be the best science or technology related companies to invest in today? What will be the next Microsoft?
  18. E

    Which Companies to Invest in for Quantum Computing?

    Does anyone know what companies I can/should buy stock in if I want to invest in quantum computers?
  19. B

    Investing in stocks and probability

    the possibility of people investing in stock A is 0.40, the possibility of people investing in stock B is 0.15, and the possiblity of people investing in both stock is 0.05. the question is what is the possibility of people investing in stock A first and will also invest in stock B. I...
  20. M

    Calculating Investment Growth: $5,000 to $7,500 at 8% Interest

    How many years (to two decimal places) will it take $5,000 to grow to $7,500 if invested at 8% compounded semiannually? Compounded continuously? Thank you!
  21. T

    Solving an Actuarial Problem: Investing $10,000 for Annual Scholarships

    This is a problem on an assignment for my actuarial class. First of all I found how much time it would take for the investment to reach the present value of the perpetuity: 10000(1 + i)^n = 2000/i 10000(1 + 0.05)^n = 2000/0.05 n = ln(4)/ln(1.05) n = 28.41339817 Then for the second...
  22. O

    Invest in $1000 - High Yields & Low Risks

    id like to start making money. obviously, an end to buying things is the first step. i have a job also, but i would like to make money, on my money. investing is the only option i think. what is right for me with maybe 1000 to work with, wanting high yields and low risks.
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