what is investment?

what are the risk,and what are some examples?

Theoretically ANYTHING you do with your money can be considered an investment.

From the riskiest start up company: The risk is that many business start ups fail, so you have a high risk of losing your entire investment. However, if the business takes off your investment can multiply exponentially and set you up for the rest of your life, and potentially for generations of your family's life.

Putting your money in the bank is an investment: You value capital preservation and the FDIC insurance helps you sleep at night, so the bank will guarantee your deposit and pool it together with millions of others in exchange for a modest interest payment. Your risk is that your money won't grow to keep up with inflation though and you will outlive it.

Putting your money in a shoebox in your closet is even an investment: For someone that doesn't even trust banks and the government to preserve their nest egg. The benefit is you know exactly where your money is and that it will be there for you every second. The risk again is inflation, plus you assume the risk of guaranteeing it because it could be lost in a robbery or fire.

Hope that helps.

what is investment?

what are the risk,and what are some examples?