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The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.

The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management managers determine the assets that the business enterprise obtains. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). The manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of capital.

A business might invest with the goal of making profit. These are marketable securities or passive investment. It might also invest with the goal of controlling or influencing the operation of the second company, the investee. These are called intercorporate, long-term and strategic investments. Hence, a company can have none, some or total control over the investee's strategic, operating, investing and financing decisions. One can control a company by owning over 50% ownership, or have the ability to elect a majority of the Board of Directors.

Capital Investment Subcategories Capital Investment Articles Banks by Boris Tomson Oct 02, 2008 A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. The first modern bank was founded in Italy in Genoa in 1406, its name was Banco di San Giorgio .Many other fi... About Bank by Boris Tomson Oct 02, 2008 A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. The first modern bank was founded in Italy in Genoa in 1406, its name was Banco di San Giorgio .Many other fi... Banking: The Cradle Of Capitalism by addi vardhaman May 29, 2008 Summary: Banks are the chief participants in Indian financial system. The banking service provides numerous facilities for the common man. Indian banking system stands on a very sound footing, tracing its roots to the last decades of ... Phychological Capital - A Trader's Best Friend by Ron Lewis Feb 11, 2008 Many of my articles have discussed how important it is for the active trader to develop the proper mind set to trade. The concept of "psychological capital" is going to be the topic of this article. As I have said may times, finding the right... Wealth Creation is the outcome of a simple step towards systematic investment by dipendra nathawat Feb 06, 2008 Wealth creation out of capital market can be very tough and time consuming task. The people who earn through capital markets have to give too much of time to understand its every aspect. But with mutual funds, investing in capital market has become a... Ordinary Income And Capital Gains by Anthony Green Jan 10, 2008 Profit you make from your stock investments can be taxed in one of two ways, depending on the type of profit: Ordinary income If the profit you make from stock investments is taxed, your profit is taxed at the same rate as wages at yo... Book Review: The Brainwashing of the American Investor by Steve Selengut Nov 28, 2007 As I write this (11-27-2007), the markets are getting ready to open after closing down the previous day. The Dow Jones industrial average has fallen nearly 240 points and the headline in the local paper is screaming "Wall Street suffers another big h... Wall Street Conventional Wisdom and Stock Market Corrections by Steve Selengut Nov 08, 2007 During every correction, I encourage investors to avoid the destructive inertia that results from trying to determine: how low can we go; how long will this last? Investors who add to their portfolios during downturns invariably experience higher Mar... The Dow, Your Portfolio, and Aliens by Steve Selengut Oct 17, 2007 There are two extremely good reasons why your portfolio may not be "performing" (whatever that means) either as well as you would like or as well as your buddies say that they have been doing... since last May anyway. But let's define our terms be... Capital gain promise for property investors by Jim Barnaby Oct 15, 2007 Chancellor of the exchequer Alistair Darling is not a popular man in some parts. His pre-budget statement drew accusations from political opponents that he was a "magpie", stealing the tax plans of others, while he, like his boss and former incumbent...