investment

noun in·vest·ment \ in-ˈves(t)-mənt \

Definition of investment

1 a archaic : vestment

b : an outer layer : envelope

2 : investiture 1

3 : blockade, siege

Origin and Etymology of investment

¹invest

NEW! Time Traveler

First Known Use: 1597

in the meaning defined at sense 1a

See Words from the same year

investment

noun

Definition of investment

: the outlay of money usually for income or profit : capital outlay; also : the sum invested or the property purchased

Origin and Etymology of investment

²invest

NEW! Time Traveler

First Known Use: 1615

in the meaning defined above

See Words from the same year

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer

Financial Definition of INVESTMENT

investment

noun

What It Is

An investment is an asset intended to produce income or capital gains.

How It Works

Investments can be stocks, bonds, mutual funds, interest-bearing accounts, land, derivatives, real estate, artwork, old comic books, jewelry -- anything an investor believes will produce income (usually in the form of interest or rents) or become worth more.

Why It Matters

The safety of the principal is of concern in any investment, although some investors are more risk tolerant than others and are thus more willing to lose some of their principal in return for the chance of generating a higher profit. The investor's ability to tolerate risk and the incremental return associated with increasing amounts of risk are two primary factors that distinguish types of investments from one another and help determine appropriate investments for a given investor.

Source: Investing Answers