Investment in shares and investment in bank are the same,do you agree? why?

what i simply mean is what do you understand by investment in shares and investment in bank. thanks for your answers.

When answering your question some economics need to be elicited for you to see the answer clearly. In economics when fixing wage levels of the citizen, it should have three parts, transaction, precautionary and speculative motive parts. Savings in Banks is from precautionary needs like educational needs of children etc; and investing in shares is from speculative motive of income. Both can be considered as savings but investment in stocks is considered as one with higher returns in mind so is also a business activity. In some wealthy individuals lives the speculative part of their income is so high that they invest heavily in stocks and other speculative activities to protect the value of their wealth a hedge from inflation. So they both are different, one is pure savings through banks which are chanelised by banks into national investments. This type of savings is also called private savings.In Bank savings the returns are contractual in nature. The one through stocks are savings but are speculative in nature where the return depends on the risk one is willing to take. Also, if a country don't fix its subsistance level wage structure one of this activity will be very limited the stock market.

no no both are different

...how do you invest in a bank? If you're talking about deposits, then it's not the same at all.

If you buy shares, you own pieces of companies. Money put into a bank account earns interest, but you own nothing (aside from the money). You only get the interest because the bank pays you a little for the opportunity to lend your money out to other people.

If you mean is putting money into the bank the same thing as buying shares in a company, they are radically different.

If you put your money in the bank, you'll earn a few percent in interest per year. Some accounts pay no interest, and many pay very little. But there are accounts out there that pay 3, 4 even 5 percent per year.

If your bank is in the USA, chances are it is FDIC insured. This means that even if the bank goes bankrupt, the federal government will pay you whatever amount you had in the bank, up to $100,000. So there's essentially no risk. The only risk that you don't get your money back is if the USA is invaded and conquered and the government doesn't exist any more.

Buying stocks entails a whole set of risks. Stocks go up and down every day. You have risk that the company will go bankrupt, or that the sector that company is in won't do well, or the economy won't do well. You can lose some or even all of your investment. On the other hand, you can definitely earn more than 3, 4 or 5%.

Stocks: more risk, more reward potential than putting your money into a bank account.

Note that some banks market various other products, like mutual funds, that are not FDIC insured. These can be just as risky as stocks. They are not insured by the government.

I'm not exactly what you are asking. Are you wanting to know the difference between putting your money in publicly traded stock vs. putting it in a regular bank account?

The two are vastly different. The bottom line is that when you purchase shares in a private company there is no guarantee of the future value of those shares. You are, essentially, buying a stake in a business. Conversely, with a bank there is a guarantee of a fixed interest (usually pretty low). The bank, in turn, uses that money to make loans, etc...