What Is Investment Style? Investment style is the method and philosophy followed by an investor or money manager in selecting investments for a portfolio. Investment style is based on several factors and typically tends to be based on parameters such as risk preference, growth vs. value orientation, and/or market cap. The investment style of a
What Are Investing Fads? Investing fads are popular stocks or other investments that enjoy substantial short-term gains. Investing fads are normally characterized by a temporary excessive enthusiasm for a certain investment or style, which is by definition unsustainable over the long term. The dotcom bubble was an example of an investing fad in which investors
What Is an Investment? An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it
What Is an Investment Horizon? Investment horizon is the term used to describe the total length of time that an investor expects to hold a security or a portfolio. Basics of Investment Horizon Investment horizons can range from short-term, just a few days long, to much longer-term, potentially spanning decades. For example, a young professional
What Is Investment Advice? Investment advice is any recommendation or guidance that attempts to educate, inform, or guide an investor regarding a particular investment product or series of products. Investment advice can be professional—that is, the investor pays a fee in exchange for the qualified professional’s guidance and expertise, as seen with financial planners—or it can
What Is an Investment Adviser? An investment adviser (also known as a stock broker) is any person or group that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of clients’ assets or by way of written publications. The precise definition of the term was established through the
What Is Investment Analysis? Investment analysis is a broad term for many different methods of evaluating investments, industry sectors, and economic trends. It can include charting past returns to predict future performance, selecting the type of investment that best suits an investor’s needs, or evaluating individual securities such as stocks and bonds to determine their
What Is an Investment Bank? An investment bank is a financial services company that acts as an intermediary in large and complex financial transactions. An investment bank is usually involved when a startup company prepares for its launch of an initial public offering (IPO) and when a corporation merges with a competitor. It also has
What Is Investment Banking? Investment banking is a type of banking that organizes large, complex financial transactions such as mergers or initial public offering (IPO) underwriting. These banks may raise money for companies in a variety of ways, including underwriting the issuance of new securities for a corporation, municipality, or other institution. They may manage
What Is an Investment Center? An investment center is a business unit in a firm that can utilize capital to contribute directly to a company’s profitability. You may compare and contrast some parallels like the terms “profit center” or “cost center.” Companies evaluate the performance of an investment center according to the revenues it brings in
