What "investment" means in finance

An investment is the purchase of an asset or financial instrument with the expectation that it will generate income or appreciate in value over time. It is a way of using money to potentially earn a return, which could come in the form of capital gains, dividends, or interest payments. Investments can be made in a variety of assets such as stocks, bonds, real estate, commodities, mutual funds, or exchange-traded funds (ETFs). The decision to invest involves assessing the potential risks and rewards associated with the investment and making a choice based on the investor's personal financial goals, risk tolerance, and available resources.