Why do People Invest?

By Rosemarie Amore - What is the origin of investing and why do people do it today?

Origination of Investing

Investing began in the mid 1500s with people giving money to companies who were conducting overseas trade voyages. Not many people could afford this so the companies started raising money from "investors" and sharing the profits from the trade voyages with them

Allocating Excess Resources

Investing allows people with excess resources to allocate them to those who need those resources and then receive appreciation in the value of the resources given.

Example: I give you $5 because you need $5 now. In return I want you to give me $6 in a week.

Why Do People Invest Today?

Today people invest for the same reason they started investing in the 1500s, some people have excess resources that other people need. In most cases today the resource that is needed is money.

Why Investing is Beneficial?

Investing allows you to take your money, give it to someone else who you believe will use your money wisely and do something that will create you even more money than what you initially gave.

Why Investing is Beneficial?

Investing is beneficial for both the person giving the funds but also the person receiving the funds. The person giving the funds is expecting to have more money than what they started with and the person receiving the funds is able to accomplish what they wanted because they now have the funds to do it.

What's Next On Investing?

Next Story: Common Sense Investing

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