Definition - What does Investment mean?

An investment is an instrument or situation where a person gives money towards the expectation that the money will grow through use in that situation to be able to pay back a dividend on top of the original amount of money invested after a set period of time. An investment is normally defined within the specific context of a set amount of money, a set amount of time, and for the purpose of a particular project or purpose. Investments can vary widely from buying stocks and bonds to giving a loan to a small business for a set amount of interest.

Justipedia explains Investment

An investment is differentiated from a loan or a purchase due to the intent of the investor being to earn more money on top of that which was given, but in essence always to get the principal sum returned. There can be caps to what is expected within an investment or it could be open ended.

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