Investment

As an economic term, investment refers solely to the addition of capital stock of the economy. This can be through purchasing of capital goods or improving human capital. Because of this it cannot be carried out by households but by the public and private sectors. Using this definition putting money into a bank account is saving and not investment.

Investment can be measured in two forms - gross and net. Gross investment is a measure of the amount spent while net investment includes depreciation of capital stock.

In*vest"ment (?), n.

1.

The act of investing, or the state of being invested.

2.

That with which anyone is invested; a vestment.

Whose white investments figure innocence. Shak.

3. Mil.

The act of surrounding, blocking up, or besieging by an armed force, or the state of being so surrounded.

The capitulation was signed by the commander of the fort within six days after its investments. Marshall.

4.

The laying out of money in the purchase of some species of property; the amount of money invested, or that in which money is invested.

Before the investment could be made, a change of the market might render it ineligible. A. Hamilton.

An investment in ink, paper, and steel pens. Hawthorne.

 

© Webster 1913.