investment

noun (1)

in·vest·ment | \ in-ˈves(t)-mənt

Definition of investment

(Entry 1 of 2)

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

investment

noun (2)

Definition of investment (Entry 2 of 2)

1 : investiture sense 1

2 : blockade, siege

3a : an outer layer : envelope

b archaic : vestment

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Last Updated

18 Apr 2019

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Time Traveler for investment

The first known use of investment was in 1597

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investment

noun

Financial Definition of investment

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

investment

noun

in·vest·ment | \ in-ˈvest-mənt