Define Investment
Subject: Finance | Topics:

Investment is the edition to the existing stock of capital after a fiscal year. Investments are one of the most important ways that economies are able to grow over time. Investments allow businesses to purchase factories, machines, and other capital goods, which in turn increase the production of goods and services and thus the standard of living of those who live in the economy. That is especially true when capital goods incorporate recently developed technologies that allow new goods and services to be produced, or existing goods and services to be produced more efficiently with fewer resources.

Investment means spending or setting aside money for future financial gain. For an individual, investment might include the purchase of financial assets, such as stocks, bonds, mutual funds, or life insurance. Investment can also include the purchase of durable goods, such as housing or a car. For an economist, investment refers to the increase in real capital in an economy, such as an increase in factories and machinery, or in its human capital—that is, a skilled and educated labor force. See also Corporate Finance; Economics: Keynesian Economics.

Investing in capital goods has a cost, however. For investment to take place, some resources that could have been used to produce goods and services for consumption today must be used, instead, to make the capital goods. People must save and reduce their current consumption to allow this investment to take place.

define investment

Types of Investment:

  • Domestic Investment
  • Foreign Direct Investment
  • Autonomous Investment
  • Induced Investment

Define Investment

Related Finance Paper:

Popular Finance Paper:

Report on Ratio Analysis

A ratio is a way of comparing two or more quantities. Analyzing any company’s current ration,quick ratio,Debt-Equity ratio,Gross Margin percentage, Net Profit Margin,Operating Profit Margin, Depreciation Expense to Operating expense ration,Inventory Turnover, Times Interest Earned is Ration ana.....

Report on Dutch Bangla Bank Limited

1.1 Introduction: Bank is the important financial institution in the economy. The economic development of a country depends on the development of banking sector. Today’s modern banks are not only providing traditional banking services but also expanding many financial services. Foreign Exchange.....

Assignment on Capital Market of Bangladesh

Capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g.,.....

Assignment on Swot Analysis of Aarong Bangladesh

About Arong Today, few urban consumers will argue that Aarong is the local Mecca for deshi handicraft. Aarong’s product designs has brought consumer attention back to the products and styles that are indigenous to Bangladesh, its designers blending the traditional with the contemporary in a man.....

Internship Report on Credit Management of Shahjalal Islami Bank Limited

Executive Summary Banking is the backbone of national economy. It is a powerful medium to bring socio economic changes in a developing country like Bangladesh. As a part of its activity the banks provide short, medium and long term credits. It has to complete it’s screening process to offer cre.....