Investing

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Investing or Investment

Investing is the act of putting money into a structured financial contract with an expected return. The level of involvement with the investment might range from very little hands-on management to much greater control.

Investment uses capital to create additional money, through income-producing vehicles, or venture investments that carry a high degree of risk. An investment is usually made in money, but not always. People can always invest their time and energy into an enterprise, as well. The term investment generally connotes that the investor is concerned with the safety of his capital, as opposed to speculation, which is generally much riskier.[1]

The main point of investing is to receive a positive return on investment. The more profitable trades you make, the higher the net returns in your account.

The term investing comes from the Latin "vestis" meaning garment.[1A] Businesses invest in their own operations all the time, and individual investors and institutions purchase common shares in companies all the time in hopes of earning returns.

Bibliography

  • 1. Dictionary of Finance and Investment Terms, Barron's Financial Guides, 2003

References