What is "Investment" meaning?

An investment is the act of committing money to a financial asset, business venture, or project with the hope of receiving returns or profits in the future. It can take various forms, such as stocks, bonds, mutual funds, or real estate. Investors typically seek to grow their wealth or generate income through these assets.

Example

"The entrepreneur made a significant investment in a tech startup, hoping it would yield high returns as the company scaled."

How is "Investment" used in business?

In business, investment is a key strategy for growth and profitability. Companies invest in new technologies, infrastructure, or talent to enhance productivity, while individuals invest in assets that can appreciate or provide steady income. Understanding investment strategies can help businesses and individuals make informed financial decisions.

Pro Tip

Diversify your investments to reduce risk and increase the potential for higher returns over time. Always research before investing and understand the risks involved.

Related Terms

Capital Allocation, Risk Management, Portfolio Diversification, Return on Investment (ROI)