Investment is the purchase of assets intended to create wealth in the future. While many people have investments in savings accounts, retirement accounts, or the stock market, most rely on the expertise of financial advisors or financial institutions such as banks to develop an investment strategy that meets their financial planning goals.
Understanding investments is thus important whether you want to work in financial services or simply make informed decisions when hiring others to help you manage your financial future.
Skillful investment management requires familiarity with different global financial markets, including the stock market, the bond market, commodities, and other financial instruments like options and other derivatives. It also involves techniques of risk analysis and risk management used in diversified portfolio construction, which increasingly leverage the power of computer algorithms.