What Is Investing & How Does It Work?

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Investing is taking stock or ownership in a venture that is separate from the self. Discover how entrepreneurs invest in themselves and how people invest with stocks, bonds or mutual funds with help from a registered financial consultant in this free video on investments and personal finance.

Part of the Video Series: Beginner Investing
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Video Transcript

This is financial adviser Patrick Munro talking about what is investing and how does it work. Investing is taking stock or taking ownership in another venture that's separate from yourself. In other words usually it's a stock or a bond or a mutual fund or a certificate of deposit or perhaps it's with real estate. You can also invest in your business and in fact you can invest, and I like this one, in yourself. And this is what entrepreneurs will do. They don't have any stock in trade with other companies, they want to chart their own pathway. Filmmakers would be something of this nature where they have an idea for a film, they raise money for it and they try to launch a successful product and the return that they make is very significant if they're successful. So this is what investing is is putting your faith and your money behind an idea. And of course the net result of that hopefully is going to be more money. That's what capitalism is all about. This is financial adviser Patrick Munro talking about what is investing and how does it work.

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