answersLogoWhite

0


Best Answer

"Smart money" in investing refers to the funds or investments made by experienced and knowledgeable investors. These are people or institutions who have a good track record of making successful investment decisions.

Imagine you're at a casino, and you have two choices for betting advice:

Your friend, who has a history of winning at the same game.

A stranger you just met.

If you follow your friend's advice, you're using "smart money" because your friend has a proven track record of making good bets. In investing, it's similar. Smart money comes from investors who have a history of making profitable choices. When they invest in a particular stock, company, or asset, others may see it as a sign that it's a promising opportunity because these experienced investors have done their research and believe it will grow in value.

So, in the world of investing, "smart money" represents the investments made by those with a history of making wise financial decisions. It's often seen as a signal of potential value and can influence other investors to follow suit.

User Avatar

Deepika Shukla

Lvl 7
7mo ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

14y ago

Smart Money is the term used to describe institutional investors, such as hedge funds and mutual funds, or well-know individual investors, e.g., Warren Buffet.

It suggests that due to their experience and more sophisticated research capabilities they should be making smarter investment decisions than small individual investors, often referred to as retail investors.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What does Smart Money mean in investing?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Be Smart About Investing In Your Retirement?

Being smart about retirement investing doesn't mean that you need to attempt to navigate the world of investments and assets. Having a standard retirement plan, like an IRA or 401(k), can be just as beneficial and will yield more when you have good financial habits. Most importantly, curb your spending and plug little leaks that cost you money unnecessarily, which will benefit you now and in later life.


How does one invest in fragrance direct?

By "invest", do you mean how to put your money into this company? You can purchase off of this website, and in that way, you are investing money into the company.


Are stocks and shares and good way to invest money?

Without a doubt, stocks and shares are a smart way to invest one's money. Investing in the stock marketisn't a guaranteed way to make money, but there are ways to make small gains with ease.


What are smart ideas for investing for retirement?

Buy into share schemes when you are younger and continue buying into them for years after, once you reach your retirement you can sell your shares and have a nice bit of money in the pot.


How will investing money benefit me?

Investing money will help you by allowing you to put your money into a stock and then you'll make money as it rises. You should always invest when the market is low.


Is growth investing smart during a recession?

Proably not at this point and time. Doing any kidn of investing during this recession would not be recommended.


What are all the Options I have for Investing money?

One of the best options for investing money is to start a Roth IRA. This allows your after tax money to grow tax free.


What is the definition of investing?

To invest is to contribute money to make money.


Why is investing money in stocks i wise choice?

Investing money in stocks may be a wise choice because if the company does well you can make money without doing work.


How do you knowldge is more powerfull then money?

Knowledge is more powerful than money because those that are smart can find ways to take care of themselves. Having money doesn't mean one is smart though.


What is the difference between investing and saving?

Investing is when we expect the money to appreciate atleast to beat the inflation, and thus money grows. Saving is just to keep the money idle out of the expenditure.


What is investing money?

http://financialwisdom.weebly.com/why-invest.html