1. Apply a sum of money in funds, assets or various goods with the purpose of achieving a certain value over time.
2. Dedicate and use financial resources, time, studies, work with the intention of obtaining a positive result.
3. Open or participate in a company or trade in order to profit from the activities to which it is dedicated.
Etymology: By the modes of Latin investment, inversionisbuilt on the prefix in-as ‘for inside’, ‘interior’, ‘in’, the term versus, which refers to ‘towards’, ‘in front of’, associated with the verb I will pourto pour, as ‘turn’, ‘change’, ‘alter’, and the suffix -ón, on the Latin forms -either, -ōnis, in action-effect property. For its part, the verb to invest is observed in Latin invertĕre.
Grammatical category: noun fem.
in syllables: in-ver-sion/sion-ions.
Investments
Investment is an economic term that refers to the placement of capital in an operation, project or business initiative in order to recover it with interest if it generates profits.
For the economy and finance, investments have to do both with savings, as well as with the location of capital and aspects related to consumption. An investment is typically an amount of money that is made available to third parties, to a company or to a set of shares in order to increase it as a result of the profits generated by that fund or business project. Every investment involves both risk and opportunity. A risk to the extent that the return of the money invested is not guaranteed, nor are the profits. An opportunity in both the success of the investment may involve the multiplication of the money placed.
In private investment, three different variables are usually considered. He expected return, that is, the profitability that is considered to be in positive or negative terms. He accepted risk, that is, the uncertainty about the return, the possibility that the investment will not recover. And finally the temporal horizonor the period in the short, medium or long term during which the investment will be sustained.
In turn, an investment can be classified according to the object of the investment (equipment or machinery, raw materials, participation in shares, etc.), according to the function in the venture (renewal, expansion, improvement or strategic), and according to the subject or company that makes the investment (private or public).
An investment is the basis of almost any economic project, since a new venture is usually supported by the capital received for its management and, therefore, depends on shareholders willing to assume the risk of investing in a new initiative that does not the future is known.
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