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To: Olu Emuleomo who wrote (123570)4/12/2001 11:03:20 PM
From: GST  Read Replies (1) | Respond to of 164684
 
Hi Olu: My sense is you are asking if buying equity is "investing" -- and the answer of course is "yes". Investing is not a specific technical term, but is usually taken to mean committing funds to ownership of an asset in the hope that it will increase in value. As such, investment is speculative behavior and the issue is the degree of risk. If the risk is low we do not usually call it "speculative", although it is speculative but with less risk. But no matter how you slice it, equity is not savings -- that much is pretty clear. The only reasonn this comes up is because some people think that equities are such a sure fire way to accumulate wealth which leads them to conclude that they do not really involve any risk -- and so buying equity must be the same as saving to people who simply never gave it any thought.