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Investment or investing1 is a term with several closely-related meanings in 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. Literally, the word means the "action of putting something in to somewhere else" (perhaps originally related to a person's garment or 'vestment'). In language, a term is a short phrase designating an idea which requires more length and complexity for a true explanation. ...
Finance studies and addresses the ways in which individuals, businesses and organizations raise, allocate and use monetary resources over time, taking into account the risks entailed in their projects. ...
Buyers bargain for good prices while sellers put forth their best front in Chichicastenango Market, Guatemala. ...
In common usage, saving generally means putting money aside, for example, by putting money in the bank or investing in a pension plan. ...
It has been suggested that this article or section be merged with consumption (economics). ...
In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e. ...
In finance, the return on investment (ROI) or just return is a calculation used to determine whether a proposed investment is wise, and how well it will repay the investor. ...
Vestments are liturgical garments and articles associated primarily with the Christian religions, especially the Catholic, Eastern Orthodox, Lutheran and Anglican Churches. ...
Types of investment
The major difference in the use of the term investment in economics and finance is that economists are usually referring to a real investment - such as a machine or a house - but financial economists usually refer to a financial asset - money that is put into a bank or the market - which may then be used to buy a real asset.
Economics - In theoretical economics, investment means the purchase (and thus the production) of capital goods - goods which are not consumed but instead used in future production. Examples include building a railroad, or a factory, clearing land, or putting oneself through college. In a stricter sense, investment is also a component of GDP given in the formula GDP = C + I + G + NX. The investment function in that aspect is divided into non-residential investment (such as factories, machinery etc) and residential investment (new houses).
- Investment is often modeled as a function of income and interest rates, given by the relation I = (Y, i). An increase in income will encourage higher investment, whereas a higher interest rate may discourage investment as it becomes costlier 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.
Buyers bargain for good prices while sellers put forth their best front in Chichicastenango Market, Guatemala. ...
Capital has a number of related meanings in economics, finance and accounting. ...
A good in economics is any object or service that, upon consumption, increases utility, and therefore can be sold at a price in a market. ...
This is the top-level page of WikiProject trains Rail tracks Rail transport refers to the land transport of passengers and goods along railways or railroads. ...
A factory (previously manufactory) or manufacturing plant is a large industrial building where workers manufacture goods or supervise machines processing one product into another. ...
Opportunity cost is a term used in economics to mean the cost of something in terms of an opportunity forgone (and the benefits that could be received from that opportunity), or the most valuable forgone alternative. ...
Finance - Types of financial investments include shares or other equity investment, and bonds (including bonds denominated in foreign currencies). These investments assets are then expected to provide income or positive future cash flows, but 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 - so are not considered to be 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.
Finance studies and addresses the ways in which individuals, businesses and organizations raise, allocate and use monetary resources over time, taking into account the risks entailed in their projects. ...
Security is a type of transferable interest representing financial value. ...
For short-term mutual funds investing in money market securities, see Money fund: The money market is the financial market for short-term borrowing and lending, typically up to thirteen months. ...
The capital market (securities markets)is the market for securities, where companies and the government can raise long-term funds. ...
Market liquidity is a business or economics term that refers to the ability to quickly buy or sell a particular item without causing a significant movement in the price. ...
This article discusses the use of the precious metal gold as an investment. ...
Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ...
Valuation can mean: Valuation (finance) Valuation (mathematics) This is a disambiguation page — a list of articles associated with the same title. ...
Equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises. ...
In finance, a bond is a debt security, in which the issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon). ...
A derivative is a financial contract whose payoffs over time are derived from the performance of assets (such as commodities, shares or bonds), interest rates, exchange rates, or indices (such as a stock market index, consumer price index (CPI) or an index of weather conditions). ...
In barter, an intermediary is a person or group who stores valuables in trade until they are needed, parties to the barter or others have space available to take delivery of them and store them, or until other conditions are met. ...
A bank is an institution that provides financial service, particularly taking deposits and extending credit. ...
A mutual fund is a form of collective investment that pools money from many investors and invests the money in stocks, bonds, short-term money market instruments, and/or other securities. ...
A pension (also known as superannuation) is a retirement plan intended to provide a person with a secure income for life. ...
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of potential financial loss. ...
A collective investment scheme is a way of investing money with other people to participate in a wider range of investments than may be feasible for an individual investor and to share the costs of doing so. ...
An investment club is a group of individuals who meet on a regular basis for the purpose of investing as little as $10 or $20 a month. ...
Personal finance - 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 realised, unlike saving(s) where the more limited risk is cash devaluing due to inflation.
- In many instances the term 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. To help establish whether an asset is saving(s) or an investment you shoud consider where your money is invested. If the answer is cash then it is savings, if it is a type of asset which can fluctuate in value then it is investment.
The examples and perspective in this article or section may not represent a worldwide view. ...
See stock (disambiguation) for other meanings of the term stock A stock, also referred to as a share, is commonly a share of ownership in a corporation. ...
A collective investment scheme is a way of investing money with other people to participate in a wider range of investments than may be feasible for an individual investor and to share the costs of doing so. ...
Save might refer to: Save (sport) - to stop a goal or maintain the lead To save a document in computer file management (see also Saving a webpage) The River Save (Zimbabwe), Zimbabwe The River Save (Hungary), Hungary -- joins the Danube just above Belgrade. ...
The examples and perspective in this article or section may not represent a worldwide view. ...
In common usage, saving generally means putting money aside, for example, by putting money in the bank or investing in a pension plan. ...
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See also Appreciation is a term used in accounting relating to the increase in value of an asset. ...
Most generally, the accumulation of capital refers simply to the gathering or amassment of objects of value; the increase in wealth; or the creation of wealth. ...
In finance and economics, divestment or divestiture is the reduction of some kind of asset, for either financial or social goals. ...
Financial economics is the branch of economics concerned with the workings of financial markets, such as the stock market, and the financing of companies. ...
Foreign direct investment (FDI) is the movement of capital across national frontiers in a manner that grants the investor control over the acquired asset. ...
This article discusses the use of the precious metal gold as an investment. ...
An investor profile or style defines an investors preferences in money decisions, for example: Short term trading or Long term holding (buy and hold Risk averse or risk tolerant / seeker All classes of assets or just one (stocks for example) Value or growth stocks, big cap or small cap...
Investor relations (IR) is a set of activities which relate to the ways in which a company discloses information required for regulatory compliance and good investment judgment to bond and/or shareholders and the wider financial markets. ...
Philatelic Investment, the investment of funds in collectible postage stamps for the purpose of realizing a profit, is a relatively recent phenomenon. ...
The Securities and Exchange Commissions Regulation Fair Disclosure, also commonly referred to as Regulation FD or Reg FD was an SEC ruling implemented in October 2000 ([1]). It mandated that all publicly traded companies must disclose material information to all investors at the same time. ...
In finance, the return on investment (ROI) or just return is a calculation used to determine whether a proposed investment is wise, and how well it will repay the investor. ...
In common usage, saving generally means putting money aside, for example, by putting money in the bank or investing in a pension plan. ...
This article discusses the use of the precious metal silver as an investment. ...
Speculation involves the buying, holding, and selling of stocks, bonds, commodities, currencies, collectibles, real estate, derivatives or any valuable financial instrument to profit from fluctuations in its price as opposed to buying it for use or for income via methods such as dividends or interest. ...
A Stock Trader or Stock Investor is a securities professional or firm, who buys and sells securities, such as stocks and bonds. ...
Look up Trend in Wiktionary, the free dictionary Wikiquote has a collection of quotations related to: Trend The word trend has a number of possible meanings: In statistics, a trend is a long-term movement in time series data after other components have been accounted for. ...
Please wikify (format) this article as suggested in the Guide to layout and the Manual of Style. ...
Ethical investing, also known as Socially responsible investing or SRI attempts to ensure that invested funds are not used to violate the investors most basic moral values or ethical codes. ...
This is a list of over 200 articles on marketing topics. ...
This is a list of articles on general management and strategic management topics. ...
This aims to be a complete list of the articles on economics. ...
This is a list of topics which are relevant to Accountancy. ...
What follows is a list of over 250 Wikipedia articles on finance topics. ...
This is an alphabetical list of well-known economists. ...
Notes Note 1: British- and American English, respectively. American English (AmE) is the dialect of the English language used mostly in the United States of America. ...
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