What is the difference between investing and trading?

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October 2016
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What a great question for Investopedia!

This is really a philosophical question of sorts because there is some blurring between the terms. In a nutshell, however, investing is generally the pursuit of a longer term increase in the value of a security such as a stock or bond. Trading is really not concerned about the long-term prospects of a security--rather a trader seeks to profit simply from the pricing movement of a security. I hope that helps. Good luck!

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