Business

Finding the company (or companies) of peers

People at school, places of employment and many other settings often consider it worthwhile to find a group of peers to work or socialize with. But it can also be useful to organize companies into groups of peers, says Manish ...

Business

Korean firm's $22B investment will mean new US jobs, WH says

South Korea's SK Group on Tuesday announced plans to invest $22 billion in the United States on industries including semiconductors, green energy and bioscience, which the White House said will create tens of thousands of ...

Business

STMicro and GlobalFoundries plan 5.7 bn euro French factory

French-Italian chipmaker STMicroelectronics and US-based GlobalFoundries will plough 5.7 billion euros ($5.8 billion) into a new semiconductor factory in France, the firms and President Emmanuel Macron's office said Monday.

Engineering

Retrofitting untapped dams

Although more than 92,000 dams populate the country, the vast majority—about 89,000—do not generate electricity through hydropower.

Business

US senators call for close look at TikTok

Leaders of the US Senate Intelligence Committee on Tuesday called for an investigation into whether Chinese officials are getting access to data about US users of video-snippet sharing sensation TikTok.

Business

Labor Department warning opens divide on crypto in 401(k) plans

Lawmakers and investor advocates are ringing alarms over the idea of allowing cryptocurrency into 401(k) and other retirement plans, especially after a turbulent month that saw some projects implode and other cryptocurrencies ...

Business

A Bezos-Biden squabble: Can corporate taxes tame inflation?

Jeff Bezos this weekend became the latest centibillionaire to launch a political fight on Twitter by denouncing a tweet from President Joe Biden about corporate taxes as "disinformation" and "misdirection."

Automotive

How space is connecting cars

Today's connected cars are dynamic, updateable devices—and, because they can be updated, they are well equipped to become tomorrow's cars. ESA is working with European carmakers to ensure that connected vehicles harness ...

page 1 from 12

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