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Alternative Investments on Contemporary Financial Market

  • Ewelina Sokołowska

Abstract

Investing constitutes an essential factor in economic growth and development. Investments also function as the main manner of expanding capital. There are many definitions of the term ‘investment’. One of most well-known definitions, considered as a classic one, is the concept proposed by Hirshleifer (1958). He claimed, that investing involves sacrificing the current goods in exchange for uncertain benefits in the future. In an economic sense, an investment is a purchase of goods that are not consumed today, but are used in the future to create wealth. This definition indicates few important characteristics of investments. Firstly, an investment denotes an investor’s abandonment of current consumption, for which he/she expects a certain reward (a benefit). Secondly, an investment is realized during a certain period of time, which means that the investor can receive the reward in the future. Thirdly, future benefits constituting the reward are uncertain.

Keywords

Real Estate Financial Market Venture Capital Investment Strategy Hedge Fund 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  • Ewelina Sokołowska
    • 1
  1. 1.Department of Corporate Finance Faculty of ManagementUniversity of GdanskSopotPoland

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