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Article: Investment
- Article from:
- Gale Encyclopedia of U.S. Economic History
CopyrightCOPYRIGHT 1999 The Gale Group Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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 ...