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Effects of Investment on Employment Creation, Ch2 and Ch3

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CHAPTER TWO
REVIEW OF RELATED LITERATURE
Concepts, Opinions, Ideas From Authors/ Experts
Investment
Investment is time, energy, or matter spent in the hope of future benefits actualized within a specified date or time frame. Investment has different meanings in economics and finance.
In economics, investment is the accumulation of newly produced physical entities, such as factories, machinery, houses, and goods inventories.
The word "investment" has become muddled with overuse. Referring to a stock or a bond as an investment is still in regular use, but now people make "investments" in their education, their cars and even their flat screen TVs. In this article, we will look at the three basic types of investment as well as some of the things that are definitely not investments - no matter what the commercial says (en.wikipedia.org).
In simple terms, Investment refers to purchase of financial assets. While Investment Goods are those goods, which are used for further production.
Investment implies the production of new capital goods, plants and equipments. Refers investment as real investment and not financial investment (John Keynes).
Investment is a conscious act of an individual or any entity that involves deployment of money (cash) in securities or assets issued by any financial institution with a view to obtain the target returns over a specified period of time.
Types of investment
There are three types of investment:
1. Ownership investment
2. Lending investment
3. Cash equivalent
1. Ownership Investments
Ownership investments are what comes to mind for most people when the word "investment" is batted around. Ownership investments are the most volatile and profitable class of investment. The following are examples of ownership investments:

(a)Stocks
Stocks are literally certificates that say you own a portion of a company. More broadly

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