There is interesting matter to know about investment meaning because it’s different from one to others. Well, people buy bond to get more profit in the future and company builds new office for expanding business. Meanwhile, you can save money at bank and receive profit from bank rate. Those things are what people expect from definition of investment. Anything that gives more value in the future is considered as investment.
Exploring about Investment Meaning from Different Perspective
To understand investment meaning, you can start from financial and economic views. Both are the common aspects where people, government, and other parties involved directly on investment section. From economic perspective, you can measure then decide to purchase goods for benefitting their value in next time or future. Those goods are not for consumption, but production. As you know, production process changes and increases value of goods from one to another. This is the key to understand definition of investment easily. Any good that has more value for future utilization will be put into investment account.
Sometimes, goods are not machine, but for the consumption. In this case, you may refer to something with capability to appreciate through time, such as land, building, and house. Buying craft and art product may be belong to consumption, but the value turns to be higher in the future. What is investment in this kind of goods? People may buy something based on hobby, but they still realize the product value after in their possession. Of course, you get more value that may be called investment. More value turns to be profitable in financial term.
Furthermore, the second thing about definition of investment is related to financial aspect. It is straightforward answer when common people ask about investment. You can buy stocks, bonds, and foreign exchange to gather more profit whether for short time or long run. In simple definition, investment is mechanism or product to gain more value in the future. You can receive return while possessing stocks. When the stock value is increased, you can sell it to another buyer. It is real investment in term of money. Anything you have is on money-based measurement.
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Well, what is investment on education and health? This is interesting question because education and health aspects spend tons of money to gain the better level. You spend money for tuition and health care. Both are long-term investment to increase human capital. As it mentioned above, any good and machine for production is investment that’s a part of capital. In this perspective, human is seen as machine or goods then education can enrich the capital value. People with better education have a chance to work more productive then receive higher wage. Moreover, they are at the top health level without any illness. Both aspects go side by side alongside economic and financial ones.
When people ask for what is investment, you have the vast answer based on what aspect they want to know. In general, investment is also the way world and life works. When you do the good deed, it generates profit to solve problem when facing difficulty. Therefore, investment meaning may be varies, but its essential is similar from one aspect to others.
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