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How many types of invesments exist - Coggle Diagram
How many types of invesments exist
How many types of investments exist
There are only 2 types of investments, although there are many subtypes within these two main ones are financial investments and physical investments.
Physical investments are those in which a physical product is acquired from which an attempt is made to obtain a return. For example, the purchase of a house to later rent it or the purchase of land to sell it at a higher price in the future.
Financial investments are those in which you acquire products that are not physical and are formalized through a contract.
Investments in real estate
the process that is carried out when investing capital in one or more properties with the aim of generating profits and having greater financial freedom
Why to invest?
This form of investment is one of the surest ways to generate profit, There are several reasons why it is a good decision and enjoy different benefits
Industrial Revolution
The industrial revolution brought a change in the social, economic and political aspects:
The work paid increased much more.
The works became much easier and the cost of production was reduced.
Industries 8increased their value and her production.
The people that cultivate the land started to work in factories, leaving the countryside and making the cities grow up faster.
The economy started to generate that the owners of the companys started to become rich and luxury at the same time that the workers started to become more poor.
Economical transactions
Comparison between the different investment methods and currencies
Prices drop as mass production techniques appeared early in the 20th century. Prices spiked with post-war housing demand.
Two gains in recent decades were followed by returns to levels consistent since the late 1950,s. Since 1997, the index has risen about 83%
Decline and run-up
The great depression from wall street
The great depression occurred on November 29th, 1929. It happened because the Wall Street investors traded 16 million shares on the New York stock exchange.
The gap between the rich and poor is at its highest point in 30 years, the 10% richest win 9.6 times more than the 10% poorest.
One of the main factors of why inequality is increasing is globalization’s impact. From the perspective of income inequality, in proportion, indirect taxes affect more people with low salaries than people with high salaries and it makes inequality bigger.
The increase of the economical gap between the different socioeconomic levels