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Definition

Investment

Definition 1

Investment is the expenditure that aims at a bigger and more profitable financial outcome for the investor as well as the business itself. The business owner wants the additional asset to spread his/her business and the investor wants his/her money to automatically make them richer instead of sitting idly in a bank account or something.

It represents production that is not consumed but rather is utilized in the production of other additional output. Investment also represents an addition to the capital stock of an economy.

Definition 2

The act of purchasing something looking at the future benefit of it. That would count as a fruitful expenditure in a slightly different sense.

Definition 3

Spending time, energy and/or effort into something particular that accounts for some desired outcome in the future.

Types of Investment

There are a number of major investment options and they are as listed below -

  1. Stocks
  2. Bonds
  3. Mutual Funds
  4. Bank Products
  5. Annuities
  6. Retirement
  7. Insurance
  8. Cryptocurrency

Investing in stocks, bonds, mutual funds, bank products, annuities, insurance etc. are all very good ways to allow your wealth to multiply in a self-regulated process. Where to invest requires just a primary level of decision-making.

 

Use of the Term in Sentences

  • The investments in home appliances directly translate into convenience at present.
  • Joining the creative writing seminar would be an investment towards the future I want.

 

Webster Dictionary Meaning

1. Investment
- The act of investing, or the state of being invested.
- That with which anyone is invested; a vestment.
- The act of surrounding, blocking up, or besieging by an armed force, or the state of being so surrounded.
- The laying out of money in the purchase of some species of property; the amount of money invested, or that in which money is invested.
Category: Economics
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