Your ’safe’ money isn’t so safe

Dec 31

Your ’safe’ money isn’t so safe

Did you abandon the roiling stock market for the security of a money market fund? Gulp — the mortgage mess has probably put your investments there at risk, too.

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Investing

Investing is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. The word originates in the Latin "vestis", meaning garment, and refers to the act of putting things (money or other claims to resources) into others' pockets.

Differences

The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.

Investing guide