investment

In economics, the purchase of any asset with the potential to yield future financial benefit to the purchaser (such as a house, a work of art, stocks and shares, or even a private education).

More strictly, it denotes expenditure on capital goods with a view to achieving profitable production for consumption at a later date. Fixed investment includes buildings, machinery, and equipment, but excludes stocks of materials used in production. This capital is then used in the production of goods and services for consumption at a later date. Fixed investment, or fixed capital formation, includes buildings, machinery, and equipment but excludes stocks of material used in production. Economists also recognize that spending on education and training is a form of investment which increases the human capital of the economy.