Any goods, property, item, or other asset bought with the intention of earning revenue later on is considered an investment. Any kind of acquisition, including stock, real estate, businesses, etc., can be considered an investment. An increase in the value of the acquired asset is the primary goal. An increase in value is referred to as appreciation. The majority of the investment asset is retained to generate future wealth rather than being consumed. Three main sectors are used to classify investments:
- Stocks, real estate, and company investments are examples of ownership investments.
- Savings accounts, business bonds, and government bonds are examples of lending investments.
- Include money market products as cash equivalents.
