BA250 Week 6 DISCUSSION Investment

Investment

Investment

With the advancements in the field of business, there has been diversification and growth in the financial markets, especially in terms of investment. Wall Street, originally a physical street with blocks of buildings along the street in Manhattan, New York City has grown to see a substitution of the term Wall Street to mean financial markets in the entire United States of America. Wall Street is the street, which is the site where most of New York Stock exchange took place. Casinos have been avenues well known for gambling and is a channel through which owners make money, while gamblers make or lose money depending on their luck (Greiner,2013) .

To determine whether Wall Street is a casino or investment in the future we must have a clear distinction between the two, the different strategies employed in both. Casinos are gambling establishment and involve games of chance to increase your investment. Luck is the main tool employed in gambling and casinos. You stake your capital and hope that you win and get a profit from it. Investments in the future on the other hand are well planned organized and have a general strategy based on data gathered and verified. Investments in Wall Street

Wall Street, in my opinion is an investment as opposed to a casino. In Wall Street, individuals or businesses can transact through buying and selling, especially in the form of contracts. They deal in various types of trade, without dealing in the physical details of a transaction. These include stocks that provide partial ownership to a corporation, bonds which are loans that can be bought and sold by its creditors and futures, which are like a promise to buy or sell something in the future at a price that is set at that particular time. Casinos on the other hand involve more spending with no surety of returns on money spent. It is evident that the transactions in Wall Street are more of investments from which an individual can earn from in the future, while money spent in casinos may be lost or gained with good returns.

Investing in Wall Street and the stock market is a risky venture. Upon investment in the stock market, return are not guaranteed and money may be lost since stock prices may change depending on the state of financial markets. Other risks include inflation, which destroys value and creates economic recessions, and market value risk. From studying this module however, I have learnt to overcome fear of investing in the stock markets. I have learnt that it is important to study and know the trends in the stock markets before choosing where to invest. I have also learnt to appreciate that there are risks involved in investment, and the various ways to reduce or if possible prevent loses.

References

Greiner, S. P. (2013). Investment Risks and Uncertainty. John Wiley & Sons.