Investments refer to the allocation of resources, usually money, with the expectation of generating an income or profit over time. This process involves purchasing assets or financial instruments, such as stocks, bonds, real estate, or mutual funds, with the goal of increasing the value of the original investment or receiving returns in the form of interest, dividends, or capital gains. Investments can be categorized as either physical (like property) or financial (like equities and fixed income).
The underlying principle is that by committing capital now, investors anticipate that their investments will grow or yield returns in the future. The potential for returns is often balanced against risks, as market conditions, economic factors, and the financial health of the assets involved can significantly influence investment performance. Investors typically assess their risk tolerance, investment horizon, and overall financial goals before making investment decisions.
Tesla's stock is facing significant volatility, currently the top decliner among S&P 500 companies. Donald Trump boosted Tesla's stock by 3.8% after his public endorsement through purchasing a new Tesla…