Investment

An investment is the purchase of an asset commonly related to business management, savings, economics, and finance.  The term investment does in fact change slightly from one such category to another.  An example of this scenario is that in economics the word investment refers only to a real investment such as a house, whereas in finance the word investment refers to a financial asset such as money that is then used for the purchase of a real investment or asset.

A few types of investment practices include business management, economics, finance, personal finance, real estate, and residential and commercial real estate:

• Business Management – An investment made in this area is also referred to as capital budgeting.  These assets, which may be obtained, include but are not limited to both physical and intangible assets.  Physical assets include buildings or equipment whereas intangible assets may include items such as software.  In a large number of instances, investment in employees is a highly beneficial asset that can improve in value over time with training and proper skills experience.
• Commercial Real Estate – Investments in the form of property, such as buildings or warehouses, make up commercial real estate investing.  In some forms of speculative commercial real estate, vacant lots or large pieces of land are purchased with the intent of reselling these parcels at a later date.  In some cases, redevelopment and building occurs which encourages potential buyers of a piece of commercial real estate.   
• Economics – An investment of economics is typically used for future purposes and includes tangible as well as intangible assets.  These include speculating on commodities, metals, and energies.
• Finance – An investment in finance is the purchasing of securities and/or financial assets.
• Personal Finance – An investment within personal finance is the purchasing of shares that are then placed in a collective investment scheme.  They can also be used to buy an asset with capital risk attached.  Some persons like to use mutual funds as a method of spreading their potential losses over a large number of securities.
• Real Estate – This type of investment is used solely to purchase property in form of homes and other dwelling spaces, but not the actual buildings themselves.
• Residential Real Estate – Investments of property such as houses.