INVESTMENT Meaning and
Definition
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Investment refers to the act of allocating money, time, or other resources into an asset, endeavor, or project in an attempt to generate income or profit in the future. It involves the commitment of funds with the expectation of future returns that surpass the initial cost or capital invested. Investments commonly encompass a wide range of assets such as stocks, bonds, real estate, mutual funds, and commodities.
The primary objective of investment is to preserve and increase wealth over time. Investors strategically choose investments based on their risk tolerance, financial goals, and market conditions. The inherent risk involved with investments means that desired returns are not always guaranteed, and there is potential for loss.
Investments can be short-term or long-term, depending on the specific goal. Short-term investments aim for quick returns and can involve higher risk. Long-term investments are typically made for extended periods, with the expectation of gradual growth and appreciation.
Investors employ various investment strategies and approaches, such as diversification, in order to manage risk and achieve balanced returns. Diversification involves spreading investments across different asset classes, sectors, or geographic regions to minimize exposure to a single investment or market. This strategy aims to reduce the impact of any single investment's poor performance on the overall portfolio.
In summary, investment is the allocation of resources with the expectation of achieving future financial gains. It involves risk-taking, strategic planning, and the careful evaluation of potential returns in order to make informed investment decisions.
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• That in which anything is invested, as money; the act of placing out money to interest or profit in the public funds, in the purchase of shares or property, and the like; the act of surrounding a town, &c., in order to besiege it.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Top Common Misspellings for INVESTMENT *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for INVESTMENT
Etymology of INVESTMENT
The word "investment" derives from the Latin verb "investire", meaning "to clothe" or "to cover". In the 16th century, the term "investment" was used in English to refer to the act of putting clothes on someone. Over time, it began to take on a metaphorical meaning, referring to the act of putting resources or money into something with the expectation of generating a profitable return. Today, "investment" typically denotes the allocation of funds or assets into various financial instruments or ventures for the purpose of generating income, appreciation, or future benefits.
Idioms with the word INVESTMENT
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Defensive Investment Strategy
Defensive Investment Strategy refers to a financial approach taken by investors to protect their wealth during times of market uncertainty or economic downturns. This strategy involves investing in assets or sectors that are considered more stable and less volatile, aiming to minimize the risk of loss. Defensive investments typically include bonds, dividend-paying stocks, real estate, and cash equivalents, as they are perceived to be more resilient to market fluctuations compared to high-risk investments like stocks or commodities. The goal of a defensive investment strategy is to prioritize capital preservation rather than focusing solely on generating high returns.
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Investment value
Investment value refers to the intrinsic worth or potential profitability of an investment. It is the value an investor expects to receive from an investment, taking into account factors such as earnings, dividends, capital appreciation, and other financial benefits. The investment value helps determine whether an investment is beneficial or likely to yield positive returns in the future.
Similar spelling words for INVESTMENT
- investigating,
- invested with,
- investment(s),
- infestation,
- investiture,
- investment-banking,
- investigative,
- investimento,
- investigate,
- investigatory,
- infested,
- investigation,
- investment-backed,
- investment-,
- investement,
- investor,
- infection,
- under-investment,
- investment-company,
- investing,
- invective,
- capital-investment,
- invested,
- dis-investment,
- foreign-direct-investment,
- investment-related,
- infective,
- non-investment,
- pre-investment,
- infected,
- investigator,
- investment-grade.
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