By Sam Yang
Financial Markets Basics:
Financial markets control the world, whether we like it or not we are at the messy of the money men. In one way or another we engage with the financial markets on almost a daily basis, even if it is just depositing money into a savings account or writing a check. But how do the financial markets really work? This article will provide a foundation for your knowledge of the financial markets.
What is an investment? An investment is money you set aside and put to work for you so that it can produce a return to support you at a future date.
What is the purpose of investing? Why would one choose to invest when they could deposit their cash in a savings account and earn some interest? Investment is better than saving for the following reasons:
One of the biggest reasons for investing is to beat inflation. During times of depressed interest rates when savings accounts are not paying any interest, your saved money is at the mercy of inflation. As inflation goes up your money sitting in the bank will lose value and in say a year’s time you will not be able to buy the same goods as before. Therefore inflation is an important element to consider when selecting an investment vehicle for your money, always consider the “real” rate of return.
So what happens to your money when you deposit it into a savings account? It certainly does not stay in the bank vault until you come to withdraw it. The bank pools it together with thousands of other depositors’ money and tries to get a return for it as well.
What investment options are available? There are various investment options available, each carrying its own level of return as well as risk. The type of investment you decide on may depend on the following factors:
So what exactly can you invest in? Well the list below will give you an idea of the investment opportunities available:
Long term financial investment options offer higher interest rates in exchange for higher risk levels. Examples include bonds, mutual funds and long term company deposits.
This article has been a primer and introduction to the financial markets. Understanding the basics means you create a strong foundation to grasp more complicated concepts. I hope you have found this article educational and you will subscribe so that you do not miss subsequent articles.
By Harvey Friedman
Wikipedia defines Entrepreneurship:
"‘To undertake,' is the act and art of being an entrepreneur or one who undertakes innovations or introducing new things, finance and business acumen in an effort to transform innovations into economic goods."
But what does it really take to become an entrepreneur. A new idea? Maybe, but you may also be entrepreneurial in an existing business environment. Not necessarily innovating a new area of business, but coming up with idea’s on ways to improve existing business’s whether in industry, construction, finance, technology or any myriads of other area’s some of which the Entrepreneur may he himself develop. Taking risk (calculated risk) is always part of any endeavor to grow a business. If you think that your idea is going to work the first time out, think again, accepting failure and learning from it is part of entrepreneurship. Edison failed 1000 times before he finally made the light bulb. I think that having the ‘Passion and Dedication’ are two of the keys to a successful entrepreneur. If you are counting the money before you are successful, you have no business trying to be an entrepreneur. The rewards will come from the success of your endeavors, not the will to focus on the dollars. Needless to say, education in the area of your goal is paramount. Not just the school of higher learning (Undergrad or MBA) which will give you credibility to your piers, but also continuing education. Continuing education because, market places change, technology changes, the economy changes, you need to always be ahead of the curve (and your competition) and by being informed will help keep you on top.
One thing that I always considered in building a workforce was that, one, I would higher those that were smarter than me in the area’s that I needed to accomplish, but didn’t have the expertise in and two, I was more concerned with the success of my employees than my success, because if my employees were succeeding in the job that they were doing, then the company would succeed and from that I would become successful. So you can see that for me it was not about me, it was about my people. That’s not to say that I didn’t put into place systems of accountability, because we did. You need to have a system to measure your projects and goals and that’s where accountability comes into play.
Being an entrepreneur is not a 9 to 5 job, it is 7 days a week, 80 hours or more, especially in the beginning. That’s were Passion and Dedication come in. If you don’t have those items, then you are in the wrong business.
~ Mr. Friedman is a distinguished business man who built his fortune in the electrical contracting business. Mr. Freidman started at the bottom as an electrical contractor and over time managed to become a top level executive in many different electrical contracting firms in addition to starting his own firm.