Investment Definition

The word investment can be defined in many ways according to different theories and principles. It is a term that can be used in a number of contexts. However, the different meanings of “investment” are more alike than dissimilar.

Generally, investment is the application of money or other assets in the hope that in the future it would appreciate or generate more income.

According to economics, investment is the utilization of resources in order to increase income or production output in the future. An amount deposited into a bank or machinery that is purchased in anticipation of earning income in the long run are both examples of investments.

Although there is a general broad definition to the term investment, it carries slightly different meanings for different industrial sectors.

Investment Definition: According to economists, investment refers to any physical or tangible asset, for example, a building or machinery and equipment.

On the other hand, finance professionals define an investment as money utilized for buying financial assets, for example stocks, bonds, bullion, real properties, and precious items.

According to finance, the practice of investment refers to the buying of a financial product or any valued item with the anticipation that positive returns will be received in the future.

The most important feature of financial investments is that they carry high market liquidity. The method used for evaluating the value of a financial investment is known as valuation.

Business theories define investment as that activity in which a manufacturer buys a physical asset, for example, stock or production equipment, in expectation that this will help the business to prosper in the long run.

Definition of Investment for students

Investment for students is an ideal way to overcome the spiraling cost of education. Parents every year deposit a certain amount of money in banks for their child in the anticipation that it would appreciate in the future and would help their child in pursuing his or her chosen field of education.

Medical Definition of Investment

Disease can strike any time without warning and the cost of treatment can, at times, be very expensive. Medical definition of investment is when a person invests money in banks or insurance schemes so that in case of any health-related problems he or she would have enough money to afford expensive treatment.

Legal Definition of Investment

In the legal sense, investment is the outlay of money that is mainly for income or profit. It is also the property purchased or the sum invested.

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Last Updated on : 15th July 2016