investment

(redirected from invest)
Also found in: Dictionary, Thesaurus, Medical, Legal, Financial, Acronyms, Idioms, Wikipedia.
Related to invest: dictionary, invest money

investment

1. Economics the amount by which the stock of capital (plant, machinery, materials, etc.) in an enterprise or economy changes
2. Biology the outer layer or covering of an organ, part, or organism

Investment

 

the long-term placement of capital in industry, agriculture, transport, or other sectors of the domestic or a foreign economy for the purpose of deriving profits. In bourgeois economics, two kinds of investments are distinguished: financial investments and real investments.

A financial investment is the exchange of capital for stocks, bonds, and other securities issued by corporations or the state. A real investment is the placement of capital into productive fixed capital (buildings, installations, equipment), housing construction, and goods and material supplies in the country itself and abroad. Investments are realized by private corporations and the state. Private investments are directed into sectors of the national economy where the greatest profit can be derived (primarily, industry); state investments are directed into less profitable branches, for example, into the infrastructure (the underlying economic sectors of society, such as education, communications, and transport). Private investments are financed out of internal resources (depreciation deductions and retained profits) and out of other sources enlisted for this purpose: long-term credit and the issuance of securities. The financial sources of state investments are taxes, domestic and foreign loans, the income of state enterprises, and the issue of new money.

The financial operations involving investments are realized through banks (commercial and investment banks) and other financial agencies: savings banks, insurance companies, investment trusts, pension funds, and the like, which contribute to the accumulation of huge funds that belong to the population and that are used in the interests of the financial oligarchy.

The bourgeois economic experts foresee the limits of investments not in capitalist production relations but in technical production conditions and psychological factors. Although it is true that investments create income and expand markets, the antagonistic class relations of capitalist society ultimately restrict growth. The operation of the universal law of capital accumulation leads to a situation in which, because the investments are followed by a rise in the organic structure of capital, the wealth of the capitalists is growing whereas the conditions of life of the working class are deteriorating.

S. S. NOSOVA

References in periodicals archive ?
If you invest $10,000 a year in your 401(k) between the ages of 30 and 40, and you earn a 10% average annual return, upon retirement you'll have a handsome nest egg that tops $1.
Smaller endowments, on the other hand, will usually invest in pools organized by a real estate investment company.
Left to their own devices, a substantial number of employees heavily invest their 401(k) assets in company stock.
Industry does not invest heavily in research, and it has never invested in research that keeps brainpower in the North.
Molinski seizes on that fact to support his theory of why the time is right to invest in Latin America.
Among other things, the Kerrey-Simpson plan would increase the retirement age from 67 to 70 over 35 years, reduce the formula for Social Security cost-of-living increases, and force workers to invest two percentage points of their payroll taxes privately.
Since INVEST is a full-service financial company, clients will be able to sit down with an INVEST Representative and get personalized investment advice on how to meet and plan for specific financial goals.
And all Thornburg bond funds invest in short- to intermediate-term investment grade bonds (municipal, corporate or U.
Many investors start with only $25 to $50 a month and invest in well- known companies such as McDonald's, Intel, PepsiCo, Home Depot and other consumer-oriented stocks,'' he said.
Mark Olson, president and chief executive officer of INVEST Financial Corporation, said, "We are delighted to welcome D&N Bank to our INVEST program.
Depending upon the size of the company, the amount of excess cash it has, and the need it anticipates for the cash in the future, the manager will want to invest in instruments that mature at different times.