Investment has become one of the most dire requirements for the growth and expansion of any business or organization, because with the help of investment a lot of companies and small businesses out there have been able to make huge profits in the market zone. What is investment? Investment is a process or action of investing funds for profit. Investing is basically done by most businesse men out there, and it's no news that it's indeed beneficial, so as many that are out there who do not know much about investment and some commonly words used; here are some common words that are related to investment. Annuity an amount of money that is invested in order to earninterest that is then paid to someone each year for the rest of their life arbitrage the process of buying things, especially currencies or company shares, in one place and selling them in another at the same time for profit blue chip a company or investment that makes a lot of money and is safe to invest in bond business a document given to someone who invests money in a government or company, promising to pay back the money with interest. capital business money or property that you use to start a business or invest to earn more money capital gains tax a tax that you pay on the profit you get from sellingproperty or from money you have invested capital-intensive a capital-intensive business or activity needs to have a lot of money invested in it chit fund indian english a kind of savings scheme used in India. Each person pays in a certain amount every month over a period of time and a prize decided by auction is given each month. contrarian someone who invests money in the opposite way to most other people, for example buying shares in companies that are doing badly, because they think that the situation will change debenture an official arrangement with a company in which the company promises to pay a fixed rate of interest on money you have invested in it derivative a type of investment that will gain in value if the price of a product changes in an expected way disinvestment the act of taking money out of a particular country, industry, or business, and investing it somewhere else divestment the process of selling shares or assets or of taking back money that you have invested drawdown a reduction in the value of an investment equity capitaL money raised for a business by selling shares or by keeping some of the money earned by the business FDI foreign direct investment foreign direct investment investment made by a person or organization in one country into a business in another country friendly society an organization in the UK that saves money for people who give small amounts of money regularly fund a financial organization that manages an amount of money by investing it fund manager someone whose job is managing and investingmoney for a financial organization futures business contracts to buy or sell shares, goods, or currency at an agreed price to be delivered at a time in the future gilt-edged gilt-edged investments are considered to be very safe and reliable hedge fund a financial organization that invests money that has a high risk of being lost but which may make a very large profit investment business money used in a way that may earn you more money, for example money used for buying property or shares in a company investment an amount of money that is invested investment the process someoneding money in order to improvesomething or make it more successful investment something that you are willing to spend money on now because it will give you benefits in the future investment bank in the United States, a bank that buys and sells large quantities of securities (=documents showing that someone owns a small part of a company) investment trust a company whose business is investing the money that it receives from its customers investor a person or organization that invests money inward investment money that is invested in a country by a person or organization from another country junk bond a bond that pays a lot of interest but has a high level of risk limited liability the legal position of having to pay only a limited amount of the debts of a company that you have invested in margin an amount of money that you give a stockbroker to pay for possible losses on money that they invest for you mature if an investment matures, the person who owns it receives back the money that they invested and the interest that it has earned after a fixed period of time maturity the time when the interest and profits on money that has been invested must be paid OEIC Open Ended Investment Company: a company that invests its money in other companies and has no limit on the numbers of its own shares that it can make available for sale offshore relating to money invested in another country pay out to provide money from an amount invested over a period of time performance the degree of success of an investment makes in making money for you portfolio all the investments that a person or company has made private equity money invested in private companies whose shares cannot be bought on the stock exchange prospectus a document providing details about a business to people who are interested in investing in it pump-priming money that is invested in something to encourage it to develop, or to encourage other people to invest in it reinvest to invest income back into a business instead of taking it as profit return to produce a particular amount of profit on money that has been invested return a profit on money that you have invested rollover a situation in which the money earned from investing in something is invested again in a similarthing savings money that you have saved in a bank or invested so that you can use it later share one of the equal parts of a company that you can buy as a way of investing money short-selling the practice of selling borrowed securities and then buying them again at a lower price simple interest interest earned on money that you have invested, calculated once a year on the principal (=the amount of money originally invested) stake the part of a business that you own because you have invested money in it stakeholder a person or company that has invested in a business and owns part of it supply-side economics economic policies that involve reducing taxes in order to encourage people to invest more money tax shelter somewhere you can invest your money without having to pay tax on the profits tracker funD money invested in all of the companies on a particular list trust legal arrangement in which a person or an organization manages someone else’s money or property trust money or property that someone manages for a person or an organization according to a legal arrangement trust an organization that manages money or property so that it can help other people or organizations trust fund an amount of money invested and managed for someone, often a child, by another person or organization unearned income money that you get from something that you have invested in, for example property or shares venture capital money invested in a new business that may or may not be successful white knight a person or company that invests money in another company in order to prevent it being sold to a larger organization yield profit on money that you have invested. It is safe to say that anyone who is aqquinted to these terms is likely to have a well understanding transaction with their investors.