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  • An asset or item that is purchased with the hope that it will generate income or appreciate in the future. The word originated from the Latin word vestis, which means “garment.” The term is used differently in economics and in finance. In economics, investment refers to the production per unit time of goods that are not consumed but are used for future production. The building of a factory used to produce goods and the investment one makes by going to college or university are both examples, tangible and intangible, respectively, of investments in the economic sense.

    In finance, an investment is where an investor puts money into a vehicle or a monetary asset is purchased with the intent that the asset will provide income in the ...

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