1 investment | Definition of investment

investment

noun (1)
in·​vest·​ment | \ in-ˈves(t)-mənt How to pronounce investment (audio) \

Definition of investment

 (Entry 1 of 2)

: the outlay of money usually for income or profit : capital outlay also : the sum invested or the property purchased

investment

noun (2)

Definition of investment (Entry 2 of 2)

3a : an outer layer : envelope
b archaic : vestment

First Known Use of investment

Noun (1)

1615, in the meaning defined above

Noun (2)

1597, in the meaning defined at sense 3b

History and Etymology for investment

Noun (1)

invest entry 1

Noun (2)

invest entry 2

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More Definitions for investment

investment

noun

Financial Definition of investment

What It Is

An investment is an asset intended to produce income or capital gains.

How It Works

Investments can be stocks, bonds, mutual funds, interest-bearing accounts, land, derivatives, real estate, artwork, old comic books, jewelry -- anything an investor believes will produce income (usually in the form of interest or rents) or become worth more.

Why It Matters

The safety of the principal is of concern in any investment, although some investors are more risk tolerant than others and are thus more willing to lose some of their principal in return for the chance of generating a higher profit. The investor's ability to tolerate risk and the incremental return associated with increasing amounts of risk are two primary factors that distinguish types of investments from one another and help determine appropriate investments for a given investor.

Source: Investing Answers

investment

noun
in·​vest·​ment | \ in-ˈvest-mənt How to pronounce investment (audio) \

Kids Definition of investment

1 : the act of putting out money in order to gain a profit
2 : a sum of money invested
3 : a property in which money is invested

investment

noun
in·​vest·​ment | \ in-ˈves(t)-mənt How to pronounce investment (audio) \

Medical Definition of investment

1 : an external covering of a cell, part, or organism
2 : a layer of heat-resistant material in which a dental appliance (as a bridge or inlay) is cast or in which it is embedded before soldering

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investment

noun
in·​vest·​ment

Legal Definition of investment

 (Entry 1 of 2)

investment

noun

Legal Definition of investment (Entry 2 of 2)

1 : the outlay of money usually for income or profit : capital outlay also : the sum invested or the property purchased
2 : the commitment of funds with a view to minimizing risk and safeguarding capital while earning a return — compare speculation

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