Investment - Definition

Investment is a term with several closely related meanings in finance and economics. It refers to the accumulation of some kind of asset in hopes of getting a future return from it.

• In theoretical economics, investment means the purchase (and thus the production) of capital goods - goods which are not consumed but instead used in future production. Examples include building a railroad, or a factory, clearing land, or putting oneself through college.

• In finance, investment means buying monetary or paper assets, for example equity investment or real estate investment or bonds or postage stamps. These investments may then provide a future income and increase in value.

• In Investing to purchase and sell securities for any reason.

See also

• Appreciation
• Capital accumulation
• Divestment
• Financial economics
• Foreign Direct Investment
• Investor profile
• Investor relations
• Over-investing
• Philatelic investment
• Return on investment
• Speculation
• Trend

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External link

• Investing textbook - in Wikibooks
• Investor Word (http://www.investorwords.com/) - an excellent dictionary of investment terms