Investing involves using money, resources, or capital to purchase assets, such as stocks, bonds, real estate, or equipment, with an expectation of earning profits or gaining future benefits from those investments.
Related terms
Risk tolerance: Risk tolerance refers to an individual's ability and willingness to withstand potential losses from their investments.
Return on investment (ROI): ROI is a measure used to evaluate the profitability of an investment by comparing its gains relative to its cost.
Portfolio diversification: Portfolio diversification is spreading investments across different types of assets in order to reduce risk.