What is an Investment ?
An investment refers to an asset or item purchased with the expectation of generating future income or appreciation in value. Investments can include stocks, properties, or businesses, with the goal of increasing the value of the purchased asset over time. Typically, investments are not consumed immediately but are held to create wealth in the future. Investments are broadly classified into three categories:
Ownership Investments: These include assets like stocks, real estate, and investments in businesses.
Lending Investments: These include assets like savings accounts, corporate bonds, and government bonds.
Cash Equivalents: These are short-term, highly liquid instruments like money market funds.