What is The Meaning of Investment Decision Making?




An investor is surrounded by many factors in his consideration of making investments. He is interested in minimizing risk and maximizing returns. He is also interested in liquidity safety and security of his investments. Thus, while buying a security, the investor has the primary purpose of the gain. He has to follow certain methods for forecasting the future behavior of the investments and the rate of return on them. This can be one by the analysis of the broad economic forces in which they operate, the kind of industry to which they belong and the analysis of the company’s internal working. The investor has to try and form a strategy to make investment decisions. In other words he has to follow certain procedure to make investment decisions. Investment consists of uncertainty and high stakers for thrill and excitement. Thus, investment is a game but you must know how to play it.


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