OPINION | What the term investing really means | Business

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Jargon, lingo and acronyms can be overwhelming. For the average person, Hannes Viljoen unpacks the basics. | News24_Business

For more financial news, You can know the name of that bird in all the languages of the world, but when you're finished, you'll know absolutely nothing whatever about the bird. You'll only know about humans in different places, and what they call the bird… I learned very early the difference between knowing the name of something and knowing something.It is not only a characteristic of big corporates.

If you buy something, with the hope of selling it in the near future for a higher price than you bought it at, you are speculating that someone will come by, with the same hopes and ideas, as you! That is quite often how 'bubbles' are born. Investing is the provision of capital to a company in exchange for a share in the firm, you are literally purchasing a portion of a firm. You provide the capital because you believe the said company would be able to use the capital to further their reason for being , with the objective of making a profit or earning a return on your investment.

 

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