CLOZE EXERCISE

amount   business   differs   implicit risk   income   invest   loss   money   resulting in   short-term

What Is Investing?

Investing, broadly, is putting (1)_____________ to work for a period of time in some sort of project or undertaking in order to generate positive returns (i.e., profits that exceed the (2)_____________ of the initial investment). It is the act of allocating resources, usually capital (i.e., money), with the expectation of generating an income, profit, or gains.

One can (3)_____________ in many types of endeavors (either directly or indirectly) such as using money to start a (4)_____________, or in assets such as purchasing real estate in hopes of generating rental (5)_____________ and/or reselling it later at a higher price.

Investing (6)_____________ from saving in that the money used is put to work, meaning that there is some (7)_____________ that the related project(s) may fail, (8)_____________ a (9)_____________ of money. Investing also differs from speculation in that with the latter, the money is not put to work per-se, but is betting on the (10)_____________ price fluctuations.

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