Investment facts for kids
Investment or investing means that an asset is bought, or that money is put into a bank to get a future interest from it. Investment is total amount of money spent by a shareholder in buying shares of a company. In economic managment sciences, investments means longer-term savings.
It is a term used in business management, finance and economics, related to saving or deferring consumption. Literally, the word means the "action of putting something in to somewhere else" (perhaps originally related to a person's garment or 'vestment').
Types of investment
The major difference in the use of the term investment between the economics field and the finance field is that economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset. Advisors, who tell people how to manage their investments, might say that even when an investment is losing money because of bad times, not to give up and withdraw it. Instead, wait for the situation to improve. This is a risk for each person to decide.
Investment Facts for Kids. Kiddle Encyclopedia.