**What is investing?** Investing is *using savings in order to get a return on it in the future.* **What are the three reasons you would invest?** The three reasons you would invest are to: 1. Earn a return on your idle resources. 2. Generate a specific sum of money for a specific goal in life. 3. Make a provision for an uncertain future. **What are the three golden rules for all investors?** The three golden rules for all investors are: 1. Invest early. 2. Invest regularly. 3. Invest for the long term, not the short term. **What are the physical assets you can invest in?** The physical assets you can invest in include: * Real estate. * Gold / jewelry. * Commodities. **What are the financial assets you can invest in?** The financial assets you can invest in include: * Fixed deposits with banks. * Small saving instruments with post offices. * Insurance / provident / pension fund. * Securities market related instruments like shares, bonds, and debentures. **What are some examples of short term investments?** Examples of short term investments include: * Savings bank account. * Money market or liquid funds. * Fixed deposit with banks. **What are some examples of long term investments?** Examples of long term investments include: * Post office savings. * Public provident fund. * Bonds. * Mutual funds. **Why should you trade in the stock market?** You should trade in the stock market because: * You don't need a lot of money to start making money. * It requires very minimal time to trade. * It's "fast" cash and allows for quick liquidation. * It's easy to learn how to profit from the stock market. **What is the primary market?** The primary market is *the channel where new securities, originating from governments and corporations, are created and sold.* **Why would a company need to issue shares to the public?** A company would need to issue shares to the public *if their capital and borrowings from banks and other financial institutions aren't sufficient for the long-term.* **How does a company invite share capital from the public?** A company invites share capital from the public through a *Public Issue.* > **What is a Public Issue?** > A Public Issue is *an offer to the public to subscribe to the share capital of a company.* > > **What is share capital?** [(1)](https://www.investopedia.com/terms/s/sharecapital.asp) > Share capital is *the money a company raises by issuing common or preferred stock.* **What is the secondary market?** The secondary market is *the channel where securities are traded after they've been initially offered to the public in the primary market and / or listed on the Stock Exchange.* **What do you become when you buy a share of a company?** When you buy a share of a company, you become *a shareholder in that company.* **What are shares also known as?** Shares are also known as *equities.* **What are the three types of investors?** The three types of investors are: 1. Speculators. 2. Hedgers. 3. Arbitragers.