investment means using money to buy something (an asset) with the aim of making a profit by selling that asset at a higher price some time in the future
There are many different types of investments. Some people put their money in art, stamps, or collectibles. Other people invest in shares and become part owners of a company.
shareholders can earn by selling shares at a higher price than they paid for them, but they can also receive a dividend - part of the profit that the company transfers to its shareholders each year.
what is the difference between saving and investing?
the investment does not guarantee that you will make a profit. In fact, the price of your assets may fall and you may not even get your capital back, and the only risk with saving is that inflation will reduce the value of the money you put on them.
a portfolio is a combination of diffrent type of investment. it can include bank accounts, bonds property shares mutual funds or any other type of investment. Investors use portfolios to minimum risk.
a stock market index is a way of measuring a section of a stock market. It shows the price of these shares at the end of each trading day and the number of shares bought and sold