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Investment
The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.
More Details
An investment is the act of putting money into a financial asset or business with the expectation of earning a return. Investments can take many forms, including stocks, bonds, mutual funds, real estate, and businesses.
Example
If you invest in a rental property, you hope to earn a return in the form of rental income and potential appreciation in the value of the property.
Related Terms
Asset
A resource owned by an individual or organization that has economic value, such as cash, investments, and property.
Bond
A debt security where an investor loans money to a borrower for interest and the return of the principal. They are low-risk but offer lower returns.
Canceled Check
A physical check that has been paid by the bank and cannot be used again. It may be returned to the payer with their bank statement.