Investing is putting your money to financial instruments or assets to buy for profits in terms of interest or income. It is the choice of an individual or business to make money in a ship, such as business, real estate, stock or financing of certain risks that the possibility of generating returns in a period of time will provide. Investment is always the risk of loss of principal or commonly known as the capital. But the chances of losses can be minimized with proper analysis. There are generally three areas to invest in.

An area to invest in the business. Here, managers determine how much to invest in assets of a company, or they can be tangible or intangible. Tangible things are buildings and machinery, while intangible things include software patents. These assets are then used to create a continuous stream of revenue for the company to generate.

Financial investment relating to the purchase of financial securities such as paper and liquid stocks or buying real assets such as gold collectibles. Good knowledge of accounting is needed in this type.One must have the knowledge to judge whether a particular investment is worth the price. Profit will come when they are sold at a higher price.

Property refers to the purchase of property and to have held, sold or rented for the purpose of income. There are two areas of real estate investing in, residential and commercial. Residential real estate is a lot of people and involves the purchase of real estate used as a primary residence. In most cases, the buyer has not the money to purchase property and to work with a lender, a bank for example. Commercial real estate includes the purchase of property which is leased. This includes commercial property, retail space, apartments and hotels.