financial-investment

Vocabulary Word

Definition

'Financial investment' means using your money to purchase an asset such as stocks, property, or a business, expecting it to help make you more money in the future. It could be risky, but it can also bring great rewards.

Examples in Different Contexts

In real estate, 'financial investment' involves purchasing property to generate income through rent or to sell at a higher price. A real estate investor might say, 'Real estate can be a lucrative financial investment, offering both rental income and capital appreciation.'

Practice Scenarios

Tech

Scenario:

Investing in cryptocurrency has yielded high returns for many. Though, its volatility and risk factors cannot be ignored.

Response:

Yes, but we need to be risk-aware while making a financial investment in cryptocurrencies.

Business

Scenario:

Our company needs to diversify its portfolio. We should explore opportunities in emerging markets.

Response:

I agree. Making a financial investment in emerging markets could lead to robust returns.