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Investments

Investors provide capital to businesses

You can buy, hold and sell assets to earn a return over time, to make capital gains, or to control the assets.

A player, hedge fund or company can invest in shares for dividends, for capital gains, or for direct or indirect control over the company.

A company can invest in land for capital gains.

A company can invest in bonds for coupon payments.

Investors provide capital to businesses. Capital as a commodity is traded in a market like every other commodity. It has a supply curve, a demand curve and a price. The price of capital is the rate of return.


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