Investment

Investment is a term with several closely related meanings in finance and economics.

  • In theoretical economics, investment means the production of capital goods - goods which are not consumed but instead used in future production. Examples include building a railroad, or a factory, clearing land, or putting oneself through college.

  • In finance, investment means buying assets, for example equity investment or real estate investment. These investments may then provide a future income and increase in value.

See also: Financial economics, Philatelic investment

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