Question

Investment is defined as:

Options

• The annual profit distributed among shareholders

• The value of a share printed on the share certificate

• Using money today to buy an asset or financial product with the expectation of earning a return in the future

• The total amount of money needed to run the company

Answer 1

Investment means using money today to buy an asset or financial product with the expectation of earning a return in the future. The return may come as interest, rent, dividend, profit, or an increase in the value of the asset.