What It Is:
How It Works/Example:
Investing can involve the purchase or sale of stocks, bonds, mutual , interest-bearing accounts, land, derivatives, real estate, artwork, old comic books, jewelry or anything else an investor believes produce income (usually in the form of interest or rents) or become worth more.
Why It Matters:
The safety of the principal in return for the chance of generating a higher . The investor's ability to tolerate risk and the incremental return associated with increasing amounts of risk are two primary factors that distinguish types of investing and help determine appropriate for a given investor.is of concern in any investing activity, although some investors are more risk tolerant than others and are thus more willing to lose some of their