What is Economic Investment?

1. Property acquired for the purpose of producing income for its owner. Just as plants and equipment are investments for manufacturers, stocks and bonds are investments for individuals.

2. Expenditures made for income-producing assets.

expenditure on the purchase of FINANCIAL SECURITIES such as STOCKS and SHARES

expenditure on the purchase of FINANCIAL SECURITIES such as STOCKS and SHARES

Also called financial investment. PORTFOLIO investment is undertaken by persons, firms and financial institutions in the expectation of earning a return in the form of INTEREST or DIVIDENDS, or an appreciation in the capital value of the securities.

capital expenditure on the purchase of physical ASSETS such as plant, machinery and equipment (FIXED INVESTMENT) and STOCKS (INVENTORY INVESTMENT), i.e.physical or real investment. In economic analysis, the term ‘investment’ relates specifically to physical investment.

Investment requires that an amount of current CONSUMPTION is forgone (i.e. saved, see SAVINGS) so as to release the resources to finance it.

Investment expenditure is a component of AGGREGATE DEMAND and an INJECTION into the CIRCULAR FLOW OF NATIONAL INCOME.

In 2003, investment expenditure accounted for 13% of gross final expenditure (GFE) on domestically produced output (GFE minus imports = GROSS DOMESTIC PRODUCT). See Fig. 133 (b) ,

An investment is an asset or item

provide income in the future or will later be sold at a higher price for a profit.

BREAKING DOWN Investment

The term "investment" can refer to any mechanism used for generating future income.

Taking an action in the hopes of raising future revenue can also be considered an investment.

Investment and Economic Growth

Investment Banking

An investment bank provides a variety of services designed to assist an individual or business in increasing associated wealth.

This does not include traditional consumer banking.

Investments and Speculation

Speculation is a separate activity from making an investment.

An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealt

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In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.

Investing is the act of committing money or capital