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- Financial Dictionary
In financial terminology, the term Investment refers to the act of investing by using capital with the intention of producing a profit or an increase in production. An Investment activity differs from a speculative activity because it is usually aimed at creating wealth.
For example, making an Investment generally involves the intended creation of wealth, and this action can be performed by a business, as with a corporation seeking to enhance its production capability, or by an individual, who might for instance wish to improve their educational background. In both cases, the investors’ goal is to increase their future profitability by using available means to improve their financial situation. An Investment can also be made in such things as: real property, manufacturing facilities, staff, financial instruments or basically anything else in which the expenditure made is intended to result in an increase in the investor’s overall level of assets.
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