Investment Basics

Investment is the accumulation of a group of assets in order to prevail returns in the future.
Any investment aimed at achieving returns will affect the degree of risk (the probability of loss of revenue or loss of capital in whole or in part)
The more risky investment, the greater the expected returns for investors.
What is the market?
Market is the place which meets the purchases and sellers to exchange goods and services
And the goods and services in the financial markets are the tools of investment (stocks, bonds ..... etc.)
Efficient markets features:
Disseminate correct information on prices and quantities in a timely manner.
Liquidity.
Transparency.
Different investment instruments
Money market:
And that any investor to invest short-term, less than one year, and these include:
A. TREASURY BILLS
B. BANK DEPOSITS
C. Bank books
Capital Market (KSE):
Capital market is a market which the circulation and exchange of securities, whether the rights of debt (government bonds or corporate bonds) or property rights (ordinary shares and shares outstanding) and is considered the capital market long-term investment (more than a year).

What is the investment in the stock market
Investing in the stock market or the stock market is also called the long-term investment. And investment in the stock market two types:
A) be a partner in a number of companies through the purchase of shares. If the company gains achieved increased share price gains are achieved, and if the company faltered down the price of anxieties and decreased investment.
B) or company that lent money to bankroll a specified period of time through the purchase of bonds and receive periodic fixed dividend (interest agreed upon) and at the end of the bond would get the amount of the loan to the company (bond nominal value).
Studies have shown in all emerging markets and developed to invest in the bourse achieve the highest returns over the long term, is the best investment for those looking for a good return for his money in the long run.
Why issued shares and corporate bonds
Primary market:
When companies and institutions decided to expand their activities, they necessarily need external funding either through capital increase or through lending, a step known as "the public tender in the primary market" and intended to market versions of "rules" or "means" followed by Companies to fund new or existing projects where it is compiling a part of the savings of individuals or financial institutions to finance these projects. On this basis, the company issued stocks or bonds and disposition of its proceeds from the sale of these releases to the public.
Secondary market:
Secondary market is a market which the circulation of securities among the various vendors and buyers construed as revenue from sales and purchase to various vendors and buyers, not the issuing company for securities as is the case in the primary market.