Economics Stack Exchange
Economics Stack Exchange

Questions tagged [investment]

Regarding the purchasing of capital and productive materials by firms. this differs from saving which is a similar action done by consumers.

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Does 'ethical investing' have any effect?

Some mutual funds make a point of only investing in ethical companies (eg avoiding arms companies, polluters, human rights violators, etc). Or other organisations pressure funds to stop investing in particular industries/companies. (example). Some…
dwjohnston
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What is the difference between a loan and an investment?

IMF, WB, ADB, IDB, AIIB are known to give loans. On the other hand, China is said to be investing in Pakistani project termed as CPEC. What is the difference between these two terms in these two particular cases?
user13954
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Impact of election outcomes on individual's mood? Behavioral Finance

I am currently working on my thesis in behavioral finance. My topic is about short term stock returns after the elections. One paper ("Sport Sentiments and Stock Returns") proves that the losing country in a sports game exhibits much lower short…
Teroid
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Instrument suggestions for FDI

I am extremely stuck on trying to think of an instrument for the location of FDI within a country. The instrument must be correlated with foreign firms, but not correlated with domestically-owned firms. Note: there is no Government policy I can…
Kelly
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If a currency crashes, does that effect the value of rare or collector coins?

I own lots of collectable coins from the 70's (mostly mint dollars and quarters.) Some of my friends are telling me that the US economy is going to crash and the the dollar is going to lose its value. This got me thinking. In the unlikely event…
Hoytman
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Hypothetical price of a city (e.g. Munich)

At lunch we pondered, how much a hypothetical investor would have to pay for a whole city. What would the combined value of all real estate in a large city (like Munich) be? Is there a way to estimate this even halfway reliably? Of course there are…
user1412631
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Why would males' shorter pension's savings produce more, and not less, income?

Source: The European Union: A Beginner's Guide (1 ed. 2012) by Alasdair Blair. [p 139:]  Gender has traditionally played a key role in the pricing of insurance policies.   In 2004 an EU Directive prohibited all discrimination based on sex in…
user4020
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An explanation of the formula for the present value of an annuity

I'm reading a book that gives three formulas. In all of these formulas: $x$ is the amount of money to be received in the future $n$ is the number of years $r$ is the interest rate. The first is the present value of a lump sum: $PV = x / (1 + r)…
Vlad the Impala
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Productive and Non-productive investment

What is the exact difference between Productive and non-productive investment? There is no hard and fast distinction that I could find. Additionally, Is it correct for me to label non-productive investment as speculative investment?
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Is FDI the principal route for funds directed offshore to return to a country?

Is foreign direct investment the principal route for funds directed offshore to return to a country? For example, the UK has perpetual trade deficit. But the sterling sent overseas must make its way back into the UK economy at some point?
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Why would the rich care about the poor's overinvestment in riskier investments?

Glasbeek, Harry. BA, LLB (Melbourne), JD (Chicago). Class Privilege: How Law Shelters Shareholders and Coddles Capitalism (2017). p. 196 Bottom.   Also, from an investor's point of view, limited liability frees investment shareholders from the…
user4020
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What would happen if individuals stopped investing their money in conservative low-yield products?

There has been a rise in popularity of retail investing in stocks driven by higher annual % returns. The % returns offered by things like banking savings accounts or government bonds seem a lot less attractive in comparison. For simplicity and to…
aedcv
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How do stockbrokers purchase shares?

Do they use "Direct Stock Plans," or some other method? Not sure if this is the right place to ask, but I'm curious.
JobHunter69
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Why wouldn't an arbitrageur who shorts an overpriced security, and longs a substitute company, break even?

A Random Walk Down Wall Street (2015 11 ed, but an 2019 ed. is upcoming). p. 249 Top.   Suppose irrational investors cause an oil company security to become overpriced relative to both its fundamental value and its peer oil companies. Arbitrageurs…
user4020
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Is Foreign investment positive or negative for a country?

When a state company is sold to foreigners in a country, people who live in that country generally do not like it. Because the company is sold to foreigners. People are acting with a sense of nationalism. On the other side if there is an economic…
Soner Sevinc
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