Investment Demand

  

Categories: Investing, Econ

Investment demand is what it sounds like: demand for investment.

So...who’s demanding that investment? Businesses. They need you to invest in them so that they can expand, making both you and them money.

Some businesses might need computers and desks, while others need factory equipment and warehousing. Entities needing this kind of capital pay for your having invested in them in two primary ways: by writing debt to investors, i.e. selling them bonds (which are promises to pay back principal and then rent on that principal, i.e. interest, along the way), and selling equity to investors, i.e. a slice of ownership in that entity.

When investment demand is low, businesses aren’t currently in the business of expanding, but are either just trying to stay afloat, or are shrinking (which is generally bad for the economy and the stock market...especially in such a globally connected world).

When investment demand is high, it means businesses are doing the feel-good dance, because the economy is humming along swimmingly, allowing them to grow, which brings in more profits.

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Finance: What are M1, M2 and M3?3 Views

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Finance allah shmoop what are m one m two and

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m three Weren't those models of beamers are none None

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clearance things or the name of the cia soccer team

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How about that M five m six and maybe not

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okay and one two and three are just different measures

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or gradations for how we count the money supply in

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the economy Think of these m numbers is analog is

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teo def con one is like get ready for nuclear

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war and def con five is like you know well

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all is well on ly the m numbers here relate

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to liquidity e how closely those m numbers approximate the

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easily immediately available cash in the economy So em one

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reflects the most liquid number and just includes paper currency

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like you know dolla dolla bills and callings and things

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like checking accounts in banks where you can walk in

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cash we'll em one represents a relatively small slice of

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and a half trillion box And yes that's a lot

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Of nickels but it's relatively small in the kissing twenty

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trillion dollars u s economy em two adds to the

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m one totals What's called near money like the money

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market securities savings deposits longer duration deposits like six month

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cds up to one hundred grand and stuff like that

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well em to totals almost eight trillion box these days

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in cds and short term paper than they would dollar

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bills in your wallet Right And it's A big delineation

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