What is Investment?
In a common brief way, we can say the investment is something where we spend money on that we expect will earn the financial return after a certain period of time. In this case, the primary focus rewards on financial market investments like stocks bonds, and investment funds. We can buy many more types of investment instruments with the expectation of making money from that particular investment.
An investment is an asset or item acquired with the goal of genarating income. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth. An investment always concerns the outlay of some asset today—time, money, or effort—in hopes of a greater payoff in the future than what was originally put in.
For example, an investor may purchase a monetary asset now with the idea that the asset will provide income in the future or will leter be sold at a higher price for a profit.
An investment can refer to any mechanism used for generating future income, including bonds, stocks, real estate property, or a business, among other examples.