Investment
hideInvestment or investing is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. Investing is the active redirection of resources: from being consumed today, to creating benefits in the future; the use of assets to earn income or profit.
An investment is a choice by an individual or an organisation such as a pension fund, after at least some careful analysis or thought, to place or lend money in a vehicle (e.g. property, stock securities, bonds) that has sufficiently low risk and provides the possibility of generating returns over a period of time. Placing or lending money in a vehicle that risks the loss of the principal sum or that has not been thoroughly analyzed is, by definition speculation, not investment.
In the case of investment, rather than store the good produced or its money equivalent, the investor chooses to use that good either to create a durable consumer or producer good, or to lend the original saved good to another in exchange for either interest or a share of the profits.
In the first case, the individual creates durable consumer goods, hoping the services from the good will make his life better. In the second, the individual becomes an entrepreneur using the resource to produce goods and services for others in the hope of a profitable sale. The third case describes a lender, and the fourth describes an investor in a share of the business.
In each case, the consumer obtains a durable asset or investment, and accounts for that asset by recording an equivalent liability. As time passes, and both prices and interest rates change, the value of the asset and liability also change.
An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. The word originates in the Latin "vestis", meaning garment, and refers to the act of putting things (money or other claims to resources) into others' pockets. See Invest. The basic meaning of the term being an asset held to have some recurring or capital gains. It is an asset that is expected to give returns without any work on the asset per se.
For more information about Investment, read the full article at
Wikipedia.
This text uses material from Wikipedia and is available under the GNU Free Documentation License.
News tagged with investment
EBay completes sale of Skype for $2 billion
Nov 20, 2009 |
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(AP) -- EBay has completed its sale of Skype for about $2 billion to an investor group that included the founders of the Internet phone service.
Study: Credit crisis, debt load a double whammy for investment
Nov 09, 2009 |
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Firms with heavy long-term debt that came due amid the nation's recent credit crisis slashed investment more than three times as much as companies whose paybacks ducked the meltdown, a new University of Illinois study found.
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EBay settles lawsuit filed by Skype founders
Nov 06, 2009 |
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(AP) -- EBay Inc. has settled a legal skirmish with the founders of Skype that threatened to complicate eBay's plans to sell most of the Internet phone service to a group of investors for $2 billion.
575-million-dollar fund targets technology startups
Nov 02, 2009 |
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Silicon Valley venture capital firm Greylock Partners said Monday it has 575 million dollars in a new fund to back promising technology startups.
Doubts raised on nuclear industry viability
Nov 19, 2009 |
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(PhysOrg.com) -- The investment in nuclear power has been growing around the world over the last few years, being viewed as a means for countries to control their energy security, avoid the price fluctuations ...
Microsoft, Taiwan to set up cloud computing centre
Nov 04, 2009 |
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US software giant Microsoft Corp. on Wednesday signed an agreement with Taiwan to jointly establish a research centre here for the development of Internet computing technology.
GE to sell security unit to United Technologies
Nov 12, 2009 |
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US conglomerate General Electric on Thursday announced it would sell its security unit to United Technologies Corp. for 1.82 billion dollars.
SKorea to plant trees in China to reduce 'yellow dust'
Nov 04, 2009 |
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The Seoul city government will help fund a tree-planting project in a Chinese desert to reduce the amount of harmful "yellow dust" blowing over South Korea, officials said Wednesday.
UN says hunger stunts some 200 million children
Nov 11, 2009 |
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(AP) -- Nearly 200 million children in poor countries have stunted growth because they don't get enough to eat, according to a new report published by UNICEF Wednesday before a three-day international summit on the problem ...
MySpace in talks to buy imeem
Nov 17, 2009 |
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(AP) -- Online social hub MySpace is in talks to acquire struggling free music streaming site imeem, two people familiar with the matter said Tuesday.
Future bright for Microsoft cloud computing, server president says
Nov 19, 2009 |
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All this week at the Professional Developers Conference, Microsoft has talked about cloud computing, what many consider the next frontier. Bob Muglia, president of the company's Server and Tools business, sat down to talk ...
New algorithms for computerized, large-scale surveillance
10 hours ago |
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A recent AFOSR-funded technology should enable the Air Force to achieve advances in object and target detection technology by using sophisticated algebraic theories called groups, rings and fields.
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