Investment has different meanings in finance and economics. In finance, investment is putting money into something with the expectation of gain, usually over a longer term. This may or may not be backed by research and analysis. Most or all forms of investment involve some form of risk, such as investment in equities, property, and even fixed interest securities which are subject, inter alia, to inflation risk. In contrast putting money into something with a hope of short-term gain, with or without thorough analysis, is gambling or speculation. This category would include most forms of derivatives, which incorporate a risk element without being long-term homes for money, and betting on horses. It would also include purchase of e.g. a company share in the hope of a short-term gain without any intention of holding it for the long term. Under the efficient market hypothesis, all investments with equal risk should have the same expected rate of return: that is to say there is a trade-off between risk and expected return. But that does not prevent one from investing in risky assets over the long term in the hope of benefiting from this trade-off.
In economics, investment is related to saving and deferring consumption. Investment is involved in many areas of the economy, such as business management and finance whether for households, firms, or governments.
Other articles related to "terms, long, term":
... Amendment to the United States Constitution, moving the beginning and end of the terms of elected federal officials to January 20, was passed ... The Share the Wealth society was founded by Huey Long ... Long was assassinated ...
... As with many sports, bowling has many terms and jargon that may not be well known to the casual player or TV viewer ... (Derived from the term "turkey" for three strikes in a row.) Chicken sandwich A strike followed by 3 spares and another strike ... Derived from the term "turkey sandwich".) Chop An open frame where the front pin of a combination consisting of two or more adjacent pins is struck in the middle and neither the ball nor front pin takes ...
... Clitoroplasty, like phalloplasty, is a term that encompasses any surgical reconstruction of the clitoris, such as removal of the corpora ... of the constructed vagina is the most common long-term complication and the chief reason that a revision may be required when a girl is older ... A variety of potential problems and complications can occur, including need for long-term colostomy or vesicostomy ...
... Note specifically his use of the term "work", which includes details such as the decorative motifs on the exterior timber framing ... have become referred to as Elizabethan, and feature a long gallery as a social feature rather than the great hall ... LMH displays how a long gallery could be tacked onto an existing structure even at the expense of distorting the whole frame ...
Famous quotes related to investment:
“Goodness is the only investment that never fails.”
—Henry David Thoreau (18171862)
“There is something fascinating about science. One gets such wholesale returns of conjecture out of such a trifling investment of fact.”
—Mark Twain [Samuel Langhorne Clemens] (18351910)
“The only thing that was dispensed free to the old New Bedford whalemen was a Bible. A well-known owner of one of that citys whaling fleets once described the Bible as the best cheap investment a shipowner could make.”
—For the State of Massachusetts, U.S. public relief program (1935-1943)
“There is no finer investment for any community than putting milk into babies.”
—Winston Churchill (18741965)