Anonymous asked in Business & FinanceInvesting · 9 years ago

what 's the difference between investment and finance?

2 Answers

  • David
    Lv 7
    9 years ago
    Favorite Answer

    It's unclear whether you are referring to the noun "finance", like getting a college degree in "finance," or the verb "finance," like financing your car.

    Get a good book, like Investing For Dummies (very popular from the "Dummies" series) from your local library.

    Use and wikipedia to define financial terms:

    Definition of 'Finance'

    The science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities. Finance consists of financial systems, which include the public, private and government spaces, and the study of finance and financial instruments, which can relate to countless assets and liabilities. Some prefer to divide finance into three distinct categories: public finance, corporate finance and personal finance. All three of which would contain many sub-categories.

    Investopedia explains 'Finance'

    The study of finance can also take many forms, depending on the field or area of finance which one wishes to study. For instance, economics is considered a pillar of financial science, where both macro and microeconomic factors affect virtually levels of financial decisions and outcomes at all levels. Additionally, the study of behavioral finance aims to study the more "human" side of a science considered by most to be highly mathematical. This illustrates that the study of finance can, at times, be more art than science.

    Definition of 'Investment'

    An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.

    Investopedia explains 'Investment'

    The building of a factory used to produce goods and the investment one makes by going to college or university are both examples of investments in the economic sense.

    In the financial sense investments include the purchase of bonds, stocks or real estate property.

    Be sure not to get 'making an investment' and 'speculating' confused. Investing usually involves the creation of wealth whereas speculating is often a zero-sum game; wealth is not created. Although speculators are often making informed decisions, speculation cannot usually be categorized as traditional investing.

    Read more:

    Just type "how to invest in stock market" in the Search Y! Answers box at the top of your screen and you'll get lots of Answers, or type "how does stock market work."

    Investing Tutorials - Basics

  • Anonymous
    9 years ago

    investment is money you pay in hope of getting a bigger return out of it such as a stock.

    finance is where you borrow money to buy what you want such as a car.

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