what are obligations in investmet terms?

Answer 1

== a contractual (legal) requirement to take some specific action at some specific time (unlike an 'option' where you have the choice)

Example - you have purchased a Contract with an 'obligation' (as opposed to an 'option') to sell at 123p at end of month.

At month end, you MUST sell at that price on that date (unless, of course, you can sell the Contract to some-one else before the end of the month ..)

Answer 2

Investment in business language is like to abstain from spending now and make a saving for future use. The are various ways of saving, depending in which part of the world you are addressing the issue of saving. In some parts of the world saving can be through purchasing something of value today and sell it when need arises, some can bank the money with the bank or any saving scheme , depending again where you are or the available opportunities in that area. The attitude of most of people is that ; anything bought by one person if there is a need to sale it, it is regarded as second hand disregarding weather it was in use or no, thus looses the value to some magnitude, however small it might be. Depositing the money with the banker does not do much to maintain the purchasing power of the money however the currency's strengths in the market.In case of the inflation the deposits in the bank looses its value to the percentage of the inflation. So the obligations in investment terms starts with the surplus over expenditure or abstinence to expend for future time, especially during the needy time. This process therefore brings about ; savings. But having saving is one-thing but only when that savings is put or surrendered to someone or to asset with a view of having an interest or profit, this is when the investment comes about.