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==External links==
==External links==
*[[wikibooks:Investing|Investing textbook]] - in Wikibooks
*[[wikibooks:Investing|Investing textbook]] - in Wikibooks
*[http://www.investorwords.com/ InvestorWords.com] - financial glossary
*[http://directory.google.com/Top/Business/Investing/ Investment resources open directory.]
*[http://directory.google.com/Top/Business/Investing/ Investment resources open directory.]
*[http://www.ft.com Financial Times]
*[http://www.ft.com Financial Times]
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*[http://www.financemarkets.co.uk/ Finance Markets]
*[http://www.financemarkets.co.uk/ Finance Markets]
*[http://www.investmentnews.com/ Investment News]
*[http://www.investmentnews.com/ Investment News]
*[http://www.investmentu.com InvestmentU.com Investment Advice and Research]
*[http://www.investopedia.com Investopedia] - investing guide
*[http://www.equitygroups.com Investor Message Boards] - Investors Discuss Your Investments
*[http://www.stocks-investing.com/ Stocks-Investing.com] - "The complete beginning investor's resource"


[[Category:Finance]]
[[Category:Finance]]

Revision as of 21:48, 26 September 2005

Invest redirects here. For other uses, see Invest (disambiguation).

Definition

Investment or investingTemplate:Fn is a term with several closely-related meanings in finance and economics. It refers to the accumulation of some kind of asset in hopes of getting a future return from it.

Types of investment

  • In theoretical economics, investment means the purchase (and thus the production) of capital goods - goods which are not consumed but instead used in future production. Examples include building a railroad, or a factory, clearing land, or putting oneself through college. In a stricter sense, investment is also a component of GDP given in the formula GDP = C + I + G + NX. The investment function in that aspect is divided into non-residential investment (such as factories, machinery etc) and residental investment (new houses). Investment is a function of income and interest rates, given by the relation I = (Y, i). An increase in income will encourage higher investment, whereas a higher interest rate will discourage investment as it becomes costlier to borrow money. Even if a firm chooses to use its own funds in an investment, the interest rate represents an opportunity cost of investing those funds rather than loaning them out for interest.

See also


List of Marketing TopicsList of Management Topics
List of Economics TopicsList of Accounting Topics
List of Finance TopicsList of Economists

Notes

Template:Fnb UK and U.S. English, respectively.