THE CORRECT BEHAVIOR - WARNINGS FOR THE INDIVIDUAL



Finance services offered to savers leave them the responsibility to operate in accordance with moral principles, avoiding speculative activities even if within the limits of the law.


Trading is not investment but it is speculation; it is important to be aware of this distinction.

"Speculation indicates transactions that are made for the sole purpose of getting a profit from changes in prices”. In the case of operations on stock, purchasing and selling of assets are made with the purpose to gain money on changes in prices as soon as possible without any interest to maintain the stock in view of future dividends.
                 (http://www.jstor.org/stable/2376347?seq=1#page_scan_tab_contents)




trading is speculation


Investment, conversely, is carried out in the medium-long term perspective with the aim of obtaining a fair return through dividends without hazards on the expected returns on capital.




To maintain an adequate personal profile:


    • have in mind a medium-long term horizon (generally over 1 year)
    • invest in ethical activities, (i.e. companies operating in socially useful business);
    • Avoid the study and the purchase of any financial instrument designed for the pursuit of short and very short-term profit;
    • avoid the pursuit of profit through short-term activities;
    • avoid the attachment to the idea of ​​making money;
    • avoid any  offers (even though legally admitted) intented to do speculation.


    The way to invest should be focused on the above aspects which are of primary importance for a correct behavior from a moral-religious point of view regardless of any type of  personal utilitarian approach to finance.


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    SPECULATION IS TO BE ABANDONED IN FAVOUR OF

                         INVESTMENT  (no trading activities)
                         (MEDIUM LONG TERM HORIZON)


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