Investment is a term with several meanings related to finance and economics. The term is associated with a form of asset accumulation with a hope of future profits. Sometimes referred to as the investment of capital investment.
Definition
Based on economic theory, investment means the purchase (and hence production) of capital / capital goods are not consumed but used for future production (production of goods). Examples include building a railroad, or a factory, clearing land, or one school at a university. For more details, investment is also a component of GDP with the formula GDP = C + I + G + (XM). On aspects of the investment function is divided in non-residential investment (such as factories, machinery, etc.) and residential investment (new houses). Investment is a function of income and interest rates, seen in relation I = (Y, i). An increase in income will encourage greater investment, where interest rates higher to lower interest for investment as it will be more expensive than borrowing money. Even if a company chooses to use its own funds for investment, indicates an interest rate opportunity cost of investing those funds rather than lend to earn interest.
Investment Products
Some investment products known as securities or securities. Where the definition of securities is an instrument of ownership which can be transferable in the form of securities, stocks or bonds, evidence of debt (Promissory Notes), interest or participation in a collective agreement (mutual fund), right to buy a stock (Rights), Warrant to buy shares in the future or instruments that can be traded.
The forms of investment
* Investment is expected to increase soil populations and the use of land; land prices will rise in the future.
* Investment education with increased knowledge and skills, job search and the expected higher income.
* Investment shares of companies expected to benefit from the work or research.
Risk Investment
Investment as well as additional income a person can also carry the financial risk if the investment failed. Investment failure is caused by many things, among them the safety factor (either from natural disasters or due to human factors), the rule of law, and others.
Definition
Based on economic theory, investment means the purchase (and hence production) of capital / capital goods are not consumed but used for future production (production of goods). Examples include building a railroad, or a factory, clearing land, or one school at a university. For more details, investment is also a component of GDP with the formula GDP = C + I + G + (XM). On aspects of the investment function is divided in non-residential investment (such as factories, machinery, etc.) and residential investment (new houses). Investment is a function of income and interest rates, seen in relation I = (Y, i). An increase in income will encourage greater investment, where interest rates higher to lower interest for investment as it will be more expensive than borrowing money. Even if a company chooses to use its own funds for investment, indicates an interest rate opportunity cost of investing those funds rather than lend to earn interest.
Investment Products
Some investment products known as securities or securities. Where the definition of securities is an instrument of ownership which can be transferable in the form of securities, stocks or bonds, evidence of debt (Promissory Notes), interest or participation in a collective agreement (mutual fund), right to buy a stock (Rights), Warrant to buy shares in the future or instruments that can be traded.
The forms of investment
* Investment is expected to increase soil populations and the use of land; land prices will rise in the future.
* Investment education with increased knowledge and skills, job search and the expected higher income.
* Investment shares of companies expected to benefit from the work or research.
Risk Investment
Investment as well as additional income a person can also carry the financial risk if the investment failed. Investment failure is caused by many things, among them the safety factor (either from natural disasters or due to human factors), the rule of law, and others.
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