Vol. 10, Issue 9, Part C (2024)

Abstract
Investment involves allocating monetary resources to enhance the value of an organization's assets with the expectation of generating returns over time. This process links savers, who seek to grow their surplus funds, with financial markets where securities - tradable financial assets - are exchanged. The primary aim of investment is to produce income or increase asset value, leading to wealth accumulation. This paper explores the definition and purpose of investment, the relationship between securities and profitability, and various investment types. Key factors influencing investment decisions include the amount invested, the type of security, tenure, and expected return. Investment carries inherent risks, where higher potential returns typically correlate with increased risk. The distinction between financial investments, which focus on income generation, and economic investments, which contribute to capital stock, is also examined. Ultimately, successful investment strategies require careful selection of assets to optimize returns while managing risk.