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Thats right.Investment, in financial terms, invariably leads to "capital formation".
The part of income which is saved and used for generating interest on it is the investment.Sometimes investments can go bust-with no or negative returns on them.Investment can rightly refer to the purchase of an asset which will, hopefully,generate higher returns in future.Investment is closely related to "security" aspect as well.
The part of income which is saved and used for generating interest on it is the investment.Sometimes investments can go bust-with no or negative returns on them.Investment can rightly refer to the purchase of an asset which will, hopefully,generate higher returns in future.Investment is closely related to "security" aspect as well.
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Investing can be defined as an activity in which a person or a firm who has excess money (for which he has no proper use) either lends it to some one who needs it or purchases something that will provide a return or profit on the amount invested. Investment is basically putting you money to a use that will give you a return higher than the original amount that you invested.
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