- The act of investing.
- An amount invested.
- Property or another possession acquired for future financial return or benefit.
- A commitment, as of time or support.
- A military siege.
- Archaic.
- A garment; a vestment.
- An outer covering or layer.
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An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.
Investopedia Says:
The building of a factory used to produce goods and the investment one makes by going to college or university are both examples of investments in the economic sense.
In the financial sense investments include the purchase of bonds, stocks or real estate property.
Be sure not to get 'making an investment' and 'speculating' confused. Investing usually involves the creation of wealth whereas speculating is often a zero-sum game; wealth is not created. Although speculators are often making informed decisions, speculation cannot usually be categorized as traditional investing.
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Use of capital to create more money, either through income-producing vehicles or through more risk-oriented ventures designed to result in capital gains. Investment can refer to a financial investment (where an investor puts money into a vehicle) or to an investment of effort and time on the part of an individual who wants to reap profits from the success of his labor. Investment connotes the idea that safety of principal is important. Speculation, on the other hand, is far riskier.
noun
The material used to enclose or surround a pattern of a dental restoration for casting or molding or to maintain the relations of metal parts during soldering.
For more information on investment, visit Britannica.com.
The placement of a particular sum of money in business ventures, real estate, or securities of a permanent nature so that it will produce an income.
The purchase of property with the expectation that its value will increase over time.
Refers to the portion of a pot that you contributed, meaning that, should you win the pot, the rest is profit; how much it has cost you to stay in a pot.
SoundPoker Says: For example, if there are five people who have contributed equally to a particular pot, one fifth of that pot is your investment, while the other four-fifths is potential profit.
See Also: Equity, Implied Odds, Pot Odds, Value, Varience
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Quotes:
"Never invest your money in anything that eats or needs repairing."
- Billy Rose
"I do not regard a broker as a member of the human race."
- Honore De Balzac
"Gambling with cards or dice or stocks is all one thing. It's getting money without giving an equivalent for it."
- Henry Ward Beecher
"The social object of skilled investment should be to defeat the dark forces of time and ignorance which envelope our future."
- John Maynard Keynes
"Sometimes your best investments are the ones you don't make."
- Donald Trump
"Money itself isn't lost or made, it's simply transferred from one perception to another. This painting here. I bought it 10 years ago for 60 thousand dollars. I could sell it today for 600. The illusion has become real and the more real it becomes, the more desperately they want it."
- Oliver Stone
See more famous quotes about Investments
Investment or investing[1] is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. 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.
The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.
Returns on investments will follow the risk-return spectrum.
The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: managers determine the assets that the business enterprise obtains. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). The manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of capital.
A business might invest with the goal of making profit. These are called marketable securities or passive investment. It might also invest with the goal of controlling or influencing the operation of the second company, the investee. These are called intercorporate, long-term and strategic investments. Hence, a company can have none, some or total control over the investee 's strategic, operating, investing and financing decisions. One can control a company by owning over 50% ownership, or have the ability to elect a majority of the Board of Directors.
In economics, investment is the production per unit time of goods which are not consumed but are to be used for future production. Examples include tangibles (such as building a railroad or factory) and intangibles (such as a year of schooling or on-the-job training). In measures of national income and output, gross investment I is also a component of Gross domestic product (GDP), given in the formula GDP = C + I + G + NX. I is divided into non-residential investment (such as factories) and residential investment (new houses). "Net" investment deducts depreciation from gross investment. It is the value of the net increase in the capital stock per year.
Investment, as production over a period of time ("per year"), is not capital. The time dimension of investment makes it a flow. By contrast, capital is a stock, that is, an accumulation measurable at a point in time (say December 31st).
Investment is often modeled as a function of income and interest rates, given by the relation I = f(Y, r). An increase in income encourages higher investment, whereas a higher interest rate may discourage investment as it becomes more costly to borrow money. Even if a firm chooses to use its own funds in an investment, the interest rate represents an opportunity cost of investing those funds rather than loaning them out for interest.
In finance, investment is buying securities or other monetary or paper (financial) assets in the money markets or capital markets, or in fairly liquid real assets, such as gold, real estate, or collectibles. Valuation is the method for assessing whether a potential investment is worth its price.
Types of financial investments include shares, other equity investment, and bonds (including bonds denominated in foreign currencies). These financial assets are then expected to provide income or positive future cash flows, and may increase or decrease in value giving the investor capital gains or losses.
Trades in contingent claims or derivative securities do not necessarily have future positive expected cash flows, and so are not considered assets, or strictly speaking, securities or investments. Nevertheless, since their cash flows are closely related to (or derived from) those of specific securities, they are often studied as or treated as investments.
Investments are often made indirectly through intermediaries, such as banks, mutual funds, pension funds, insurance companies, collective investment schemes, and investment clubs. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary.
Within personal finance, money used to purchase shares, put in a collective investment scheme or used to buy any asset where there is an element of capital risk is deemed an investment. Saving within personal finance refers to money put aside, normally on a regular basis. This distinction is important, as investment risk can cause a capital loss when an investment is realized, unlike saving(s) where the more limited risk is cash devaluing due to inflation.
In many instances the terms saving and investment are used interchangeably, which confuses this distinction. For example many deposit accounts are labeled as investment accounts by banks for marketing purposes. Whether an asset is a saving(s) or an investment depends on where the money is invested: if it is cash then it is savings, if its value can fluctuate then it is investment.
In real estate, investment is money used to purchase property for the sole purpose of holding or leasing for income and where there is an element of capital risk. Unlike other economic or financial investment, real estate is purchased. The seller is also called a Vendor and normally the purchaser is called a Buyer.
The most common form of real estate investment as it includes the property purchased as peoples houses. In many cases the Buyer does not have the full purchase price for a property and must engage a lender such as a Bank, Finance company or Private Lender. Different countries have their individual normal lending levels, but usually they will fall into the range of 70-90% of the purchase price. Against other types of real estate, residential real estate is the least risky.
Commercial real estate is the owning of a small building or large warehouse a company rents from so that it can conduct its business. Due to the higher risk of Commercial real estate, lending rates of banks and other lenders are lower and often fall in the range of 50-70%.
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)
Dansk (Danish)
n. - investering, indskud, kapitalanlæg, pengeanbringelse
idioms:
Nederlands (Dutch)
investering, belegging, omsingeling, bedekking, installatie
Français (French)
n. - investissement, encerclement, placement, engagement, (Mil) investissement
idioms:
Deutsch (German)
n. - Investition, Anlage, Verleihung, Belagerung
idioms:
Ελληνική (Greek)
n. - (οικον.) επένδυση
idioms:
Italiano (Italian)
investimento, accerchiamento
idioms:
Português (Portuguese)
n. - investimento (m)
idioms:
Русский (Russian)
капиталовложение, облечение полномочиями, одеяние
idioms:
Español (Spanish)
n. - inversión, cerco, sitio
idioms:
Svenska (Swedish)
n. - investering, satsning (äv. bildl.), kapitalplacering, belägring (mil.), omringning, investitur
中文(简体) (Chinese (Simplified))
投资, 可获利的东西
idioms:
中文(繁體) (Chinese (Traditional))
n. - 投資, 可獲利的東西
idioms:
日本語 (Japanese)
n. - 投資, 投下資本, 着せること, 包囲, 投資額
idioms:
العربيه (Arabic)
(الاسم) استثمار ( الأموال)
עברית (Hebrew)
n. - השקעה, כיתור, מצור
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