Investment
An asset bought with the expectation that it will produce income or grow in value over time.
Often confused with
- Emergency Fund
- An emergency fund is held safe and liquid for the worst day; an investment accepts risk in exchange for a higher expected return.
- Savings Vehicles
- Savings vehicles protect the amount saved and pay a modest stated rate; investments accept the chance of loss for higher expected return.
Taught in
See also
5.3.B.1