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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
Escrow Funds
Funds that are held by a third party on behalf of two parties in a transaction and are released when the terms of the transaction are met.
Overdraft
A situation in which an account holder writes a check or makes an electronic transaction for more money than is available in their account.
Asset
A resource owned by an individual or organization that has economic value, such as cash, investments, and property.