What is an Investment?

May 18, 2022

What is an investment?

An investment is something of value, such as an asset, purchased that you believe will increase in value. An example of this would be purchasing stock in a company with the hopes that it will pay you dividend income in the future or potentially appreciate in value. This also means that an investment has the potential risk of losing value. 

There are many different kinds of investments such as stocks, bonds, and other financial instruments. Alternative investments can include real estate, commodities, art, and cryptocurrency.