Capital Investment (Financing for Businesses and Infrastructure) Investing in new factories, machinery, technology, and expansions with borrowed or self-generated funds serves the purpose. Types:
Personal Investment Finance (Wealth Management): Selling shares or stocks to raise money for equity financing. The goal is to earn money by investing in stocks, mutual funds, gold, real estate, and fixed deposits. Personal Investment Types: Stocks, forex, and cryptocurrencies are high-risk, high-return investments. Fixed deposits, bonds, and gold offer a stable, low-risk return. Real estate & property – Appreciation in value over time.
Debt Financing – Taking loans or issuing bonds to finance growth.Financial Markets & Instruments
Purpose: Investors trade in different financial instruments to grow their portfolios.
The Primary Financial Markets: Purchasing and selling company stock on the stock market. Forex is the business of trading currencies for a profit. Bond Market – Investing in government/corporate debt securities.
Gold, silver, oil, and agricultural products make up the commodities market.