Article: Investment

INVESTMENT


Investment refers to the acquisition of an asset for the sole purpose of producing future monetary income and/or capital gains. For an individual an investment may consist of the purchase of financial assets such as stocks, bonds, life insurance, and mutual funds, or physical assets such as a house or a car. Economists define investment as the increase in capital goods in an economy. Capital goods are the material or human resources that enable a business to produce a product or service. Investments in capital goods by businesses would include the purchase of factories, buildings, machinery, or a skilled and knowledgeable labor force. Businesses may also invest in research ...

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