Investment is a profit-making operational activity in which money income or any other wealth owner who can measure its value in currency sacrifices current consumption, purchases or purchases capital goods in order to realize value appreciation in the future. It is the process in which a country, an enterprise or an individual, for a specific purpose, signs an agreement with the other party to promote social development, achieve mutual benefit and transfer funds. It is also the economic behavior of a specific economic entity to invest sufficient funds or monetary equivalents in kind in a certain field within a certain period of time in order to obtain income or capital appreciation in the foreseeable future.
Investment can be divided into physical investment, capital investment and securities investment, of which physical investment and capital investment are used to invest in enterprises in currency and obtain certain profits through production and operation activities; Securities investment is to purchase stocks and corporate bonds issued by enterprises with money, and indirectly participate in the profit distribution of enterprises.
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What is the meaning of investment?
Investment refers to the process in which countries, enterprises and individuals sign agreements with each other for specific purposes to promote social development, achieve mutual benefit and transfer funds. It is also the economic behavior of a specific economic entity to put sufficient funds or monetary equivalents in kind into a certain field in a certain period of time in order to obtain income or capital appreciation in the foreseeable future. It can be divided into physical investment, capital investment and securities investment. The former uses money to invest in enterprises and make certain profits through production and operation activities, while the latter uses money to purchase stocks and corporate bonds issued by enterprises and indirectly participate in profit distribution of enterprises.
What does investment mean
Invest a sum of money in a company. If the company goes bankrupt, you can't get your money back. The basis is: your so-called investment should mean turning your own money into shares of the company, that is, participating in the company's operation as a shareholder of a company, and the company makes money, then your investment will have a return. According to the investment agreement, you should obtain profits. If you want to withdraw your capital, you can get your own distribution of principal and profits. The distribution method is based on your investment share and the investment proportion of other shareholders of the company. And venture capital, in a broad sense, means the same thing. However, venture capital refers to the equity investment that some investment companies specially give to some high-tech enterprises or enterprises with high technology content. The meaning of this investment is that the investment company invests money to establish a company, and then the invested person or company operates as a project of the company. Whether the project makes money in the end directly constitutes the investment risk. If the project is successful, the investment will be profitable. If the project fails, the investment will be lost. You should distinguish between investing and borrowing money. Borrowing money only enjoys the principal and interest income of the loan. The investment enjoys the return and risk of investment, and the principal may be lost. The so-called high risk and high return can also be seen here.