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Definition of 'Investment'

An investment is the act of allocating resources, typically money, in the expectation of generating future income or profit. When you make an investment, you are putting your money into something with the hope that it will appreciate in value over time, generating a return on your investment.

There are various types of investments, including stocks, bonds, real estate, mutual funds, and commodities, among others. Each investment has its own level of risk and potential for return, which can be influenced by a variety of factors, such as market conditions, economic trends, and company performance.

Investments can be short-term or long-term, depending on the specific goals of the investor. Some investments are also considered to be more speculative or aggressive, while others are more conservative and low-risk. The choice of investment ultimately depends on an individual's financial goals, risk tolerance, and overall investment strategy.

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