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Investments

Definition

Investments involve allocating resources (usually money) with the expectation of gaining returns or benefits in the future. In this context, it refers to putting financial resources towards projects or initiatives that help achieve a specific goal.

Analogy

Think of investments like planting seeds in a garden. You put time, effort, and maybe even money into caring for those seeds with the expectation that they will grow into beautiful plants that yield fruits or flowers. Similarly, making investments involves allocating resources with the hope that they will generate positive outcomes in the future.

Related terms

Renewable Energy Investment: This term refers to putting funds towards technologies like solar power or wind farms which generate energy without depleting natural resources.

Infrastructure Investment: It involves allocating financial resources towards developing essential structures like transportation systems or renewable energy grids.

Social Impact Investment: This type of investment aims to generate both financial returns and positive social or environmental impacts, such as funding projects that address poverty or climate change.

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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.