Suppose Edu decides to use $4,500 currently held as savings to make a financial investment.
One method of making a financial investment is the purchase of stock or bonds from a private company.
Suppose Bayzer, a pharmaceutical firm, is selling bonds to raise money for a new lab. This practice is called finance. Buying a bond issued by Bayzer would give Edu the firm. In the event that Bayzer runs into financial difficulty, will be paid first.