Business

JP Morgan sues Tesla for $162 mn over share warrants

JP Morgan Chase has sued Tesla for $162 million over a stock warrants contract, accusing the company of "flagrantly" ignoring its obligation to pay the investment bank after the electric carmaker's shares soared.

Business

Meet the finfluencers: TikTok's investment gurus

Trying to figure out how the stock markets work? These days you're as likely to turn to a social media influencer for advice as a financial adviser dressed in a suit.

Energy & Green Tech

France's $35B innovation plan includes nuclear reactor funds

French President Emmanuel Macron on Tuesday unveiled a 5-year, 30 billion-euro ($35 billion) investment plan for developing innovative technology and industrial activity, including building small nuclear reactors, electric ...

Business

Samsung boss goes on trial on drugs charges

The de-facto leader of South Korea's sprawling Samsung group Lee Jae-yong went on trial Tuesday on charges of illegally using the anaesthetic propofol, the latest legal travail to beset the multi-billionaire.

Business

Irish tech sector weighs up implications of global tax plan

The day after Ireland backed plans for a minimum global corporation tax of 15 percent, tech firms lured to the Republic by its historically low levy are waking up to the possibility that their situation might now change radically.

page 1 from 10

Investment

Investment or investing is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. Investing is the active redirection of resources: from being consumed today, to creating benefits in the future; the use of assets to earn income or profit.

An investment is a choice by an individual or an organisation such as a pension fund, after at least some careful analysis or thought, to place or lend money in a vehicle (e.g. property, stock securities, bonds) that has sufficiently low risk and provides the possibility of generating returns over a period of time. Placing or lending money in a vehicle that risks the loss of the principal sum or that has not been thoroughly analyzed is, by definition speculation, not investment.

In the case of investment, rather than store the good produced or its money equivalent, the investor chooses to use that good either to create a durable consumer or producer good, or to lend the original saved good to another in exchange for either interest or a share of the profits.

In the first case, the individual creates durable consumer goods, hoping the services from the good will make his life better. In the second, the individual becomes an entrepreneur using the resource to produce goods and services for others in the hope of a profitable sale. The third case describes a lender, and the fourth describes an investor in a share of the business.

In each case, the consumer obtains a durable asset or investment, and accounts for that asset by recording an equivalent liability. As time passes, and both prices and interest rates change, the value of the asset and liability also change.

An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. The word originates in the Latin "vestis", meaning garment, and refers to the act of putting things (money or other claims to resources) into others' pockets. See Invest. The basic meaning of the term being an asset held to have some recurring or capital gains. It is an asset that is expected to give returns without any work on the asset per se.

This text uses material from Wikipedia, licensed under CC BY-SA