What is the difference between Investments and trading?

[EQSIS]

What is the difference between Investments and trading?

[Pradeep]

With respect to Stock Market, If a stock is purchased and hold for a long time usually a year or more it is considered as an Investment.

On the other hand, the frequent buying/selling of the stock is considered as trading.

[Annamalai]

Investment means the stock which is purchase for long term basis is known as investment.
Trading means the stock which is purchase for short term basis and shares are sell quickly is known as trading.

 

[Abirami Duraisamy]

For both Investments and trading, the stocks are brought in the stock market in the same procedure but the timeline of holding the stocks determines whether its is investment or trading. If the stock is maintained for a years or more, it is called as investment and buying and selling in short duration is called as trading.

[R.Durga Prasad]

Actually INVESTMENTS refer to longterm holdings of shares so that it can gain some profit like dividends.

Trading refers to sale of shares frequently within days or weeks,here the risk is bit higher.

 

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