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The Basics

What is “investment”?

Investment: An asset or item that is purchased with the hope that it will generate income or appreciate in the future.
In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.
In finance, an investment is a monetary asset, including bonds, stocks, or real estate property, purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.

“Investing” “Speculating” !


Investing usually involves the creation of wealth whereas speculating is often a zero-sum game; wealth is not created. Although speculators are often making informed decisions, speculation cannot usually be categorized as traditional investing.    

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