Investment

Meanings of Investment
• Investment means purchasing
of different kind of shares,
stock and capital.
• Financial investment
• Real investment
Meaning of real investment
• Real capital formation
• Three kinds of items
1. Building of new Machine and Equipment
(capital equipment)
2. Construction of new building
3. Increase in stocks
Classification of investment
INDUCE INVESTMENT AUTONOMOS INVESTMENT
• Governed by income and • Independent of the level of income
profit

Income Income
 Classification of investment
Private investment Public investment
• Same as induced • Same as
investment because autonomous
that you spend investment.
money on product
and get 100% profit
End