Changes

Investment comes with the [[risk]] of the loss of the principal sum. The investment that has not been thoroughly analyzed can be highly risky with respect to the investment owner because the possibility of losing [[money]] is not within the owner's control. The [[difference]] between speculation and investment can be subtle. It depends on the investment owner's [[mind]] whether the [[purpose]] is for lending the resource to someone else for economic purpose or not.[3]

Investment comes with the [[risk]] of the loss of the principal sum. The investment that has not been thoroughly analyzed can be highly risky with respect to the investment owner because the possibility of losing [[money]] is not within the owner's control. The [[difference]] between speculation and investment can be subtle. It depends on the investment owner's [[mind]] whether the [[purpose]] is for lending the resource to someone else for economic purpose or not.[3]

 

In the case of investment, rather than store the [[Things|good]] produced or its [[money]] equivalent, the investor chooses to use that good either to create a durable consumer or producer good, or to lend the [[original]] saved good to another in exchange for either interest or a share of the profits. In the first case, the individual [[creates]] durable consumer goods, hoping the [[services]] from the good will make his life better. In the second, the [[individual]] becomes an entrepreneur using the resource to produce goods and services for others in the [[hope]] of a profitable sale. The third case describes a lender, and the fourth describes an investor in a share of the [[business]]. In each case, the consumer obtains a durable asset or investment, and accounts for that asset by recording an equivalent liability. As time passes, and both prices and interest rates [[change]], the value of the asset and liability also change.

In the case of investment, rather than store the [[Things|good]] produced or its [[money]] equivalent, the investor chooses to use that good either to create a durable consumer or producer good, or to lend the [[original]] saved good to another in exchange for either interest or a share of the profits. In the first case, the individual [[creates]] durable consumer goods, hoping the [[services]] from the good will make his life better. In the second, the [[individual]] becomes an entrepreneur using the resource to produce goods and services for others in the [[hope]] of a profitable sale. The third case describes a lender, and the fourth describes an investor in a share of the [[business]]. In each case, the consumer obtains a durable asset or investment, and accounts for that asset by recording an equivalent liability. As time passes, and both prices and interest rates [[change]], the value of the asset and liability also change.