The term is most commonly used to describe the flow of expenditures devoted to increasing or maintaining the real capital stock In fact a more accurate definition, which clearly encompasses the above, is that investment is the flow of expenditures devoted to projects producing goods which are not intended for immediate consumption These investment projects may take the form of adding to both physical and human capital as well as inventories Investment is a flow, the volume of which is determined by all those projects which yield a positive net present value, or an internal rate of return greater than the interest rate The former is a known as the net present value criterion and the latter as the investment (Pearce, 1996)
If you describe something you buy as an investment, you mean that it will be useful, especially because it will help you to do a task more cheaply or efficiently. When selecting boots, fine, quality leather will be a wise investment
Investment is the purchase of capital equipment Such as the purchase of machines, equipment, factories that firms need to enable them to produce It is usually split into two parts: Replacement investment - this is where companies buy new machinery and equipment that simply replaces something they had already that was worn out or inefficient Depreciation is often used as an approximation for this Net investment - this is where companies buy new machinery or equipment It is this type of investment that actually adds to the capital stock of the economy
The purchase or ownership of a security to make money by gaining income, increasing capital, or both Investments may also include artwork, antiques and real estate
investment is the flow of resources into the production of new capital It is the labor, steel, and other inputs devoted to the construction of factories, warehouses, railroads, and other pieces of capital during some period of time