Actual Question:
What’s the difference
between stock trading, investing and real estate?
Answer:
The dictionary
meaning of the word ‘Investing’ is
putting money into financial schemes, shares, property, or a commercial venture
with the expectation of achieving a profit. Further drilling down reveals a few
other aspects like period of holding,
safety of principal, regularity, and so on.
 |
| Picture depicts investor walking to the stock broker to purchase shares |
‘Stock Trading’ is buying shares or sticks with an intention of
profiting from the price fluctuations on the stock market. Stock trading is a
speculative activity and does not fit into the definition of investing.
 |
| Picture shows a trader sitting before the computer trading in stocks |
Real estate investment
qualifies as investment though it has some fundamental drawbacks.
Following table brings out
the differences among the three:
