The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of stocks, baskets of stocks, mutual funds, bonds and alternative investment instruments.
Investors often enhance their profits through compounding, or reinvesting any profits and dividends into additional shares of stock.
Investments are usually control for a period of years, or even decades, taking advantage of perks like interest, dividends and stock splits along the method. whereas markets inevitably fluctuate, investors can "ride out" the downtrends with the expectation that costs can rebound and any losses can eventually be recovered.
Investors are usually a lot of involved with market fundamentals, like price/earnings ratios and management forecasts.
