The term investments refers to the use of financial resources in assets or instruments that determine the increase of the capital invested on them by the subject.
This subject who carries out these practices is defined with the term investor, in fact. As mentioned above, the purpose of investing is to increase your capital, but also your personal satisfaction, resources and profit. These and other reasons can push a person to invest.
Fundamental for investments is having a initial capital that is a “sum” of one’s own or obtained through a loan, which is used and invested in certain assets and instruments: if the investment is successful, the recovered capital is greater than the initial one. In the event of bankruptcy, however, the capital can also be considered lost.
For this reason the investments divide the risky and least risky. They can also address different categories and areas: investments in human capital, portfolio, intangible, personal, corporate or public, just to name a few.