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Tagged: investment, Trading
investments are shares bought for medium to long term in return for a profit, where as trading is for a shorter time frame usually less than a day to take advantage of price fluctuations to make profit
Investment is held for period of years to build wealth gradually (E.g., Fixed Deposit) – Long Term
Trading involves the frequent buying and selling of stocks to yield profits – Short Term
In stock market, if we buy a share and hold it for longer period (more than one year) its called investment. The return being in the form of capital appreciation and dividend.
Trading is refereed to buying and selling shares in short period of time (in time of days,weeks or maximum of three months).
If Shares bought and kept for a Longer duration(more than a year) is called Investments or Long time Investments.
Shares bought and sold frequently refers Trading.
The differene between Investment & Trading:
INVESTMENT:- the stock which is purchased for long term.
TRADING :- The stock purchased for short term sell/buy quickly is called trading.
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