Types of investment
There are generally two types of investment: direct investment and portfolio investment. Direct investment involves starting a business where the investor deals directly with the customer. Whether the investor decides to set up a tray at the side of the road, open a store front at the bottom of the house in which he or she lives or rent space in one of those high rise complexes around town to carry on a trade or business, the investor has gotten involved in direct investment. In some instances, the investor might buy enough interest in an existing business to gain control or influence over future decisions of that business.
That too represents direct investment. Under those conditions, the investor is part owner of the business and any profits or losses that it makes are his