1.2 What is investing?
When we talk about investing, we talk about things one can do with saved money in order to maximize the growth of that money over time. In a broad sense this could include not only traditional investments, but also buying a house to live in with the knowledge (or at least the hope) that it will be worth more when sold, collecting antiques, etc. Within this paper we will discuss traditional investments – stocks, bonds, and mutual funds.