The useful idea
- The useful idea
Investment is traditionally defined as the "commitment of resources into something expected to gain value over time".
- How it works
If an investment involves money, then it can be defined as a "commitment of money to receive more money later".
- Why it matters
From a broader viewpoint, an investment can be defined as "to tailor the pattern of expenditure and receipt of resources to optimise the desirable patterns of these flows".
Why this matters
Use Investment to compare the trade-offs before committing money.
Try this
Use Investment to compare the trade-offs before committing money.
Test your recall
Which idea belongs to the explanation of Investment?
- Why it matters
- How it works
- The useful idea — correct
Investment is traditionally defined as the "commitment of resources into something expected to gain value over time".
General education only — not personal financial advice.