investment

Pronunciation: /ɪnˈvɛstmənt/

noun

Difficulty: common

Definition of investment

The act of allocating resources, such as money, time, or effort, into a venture or activity with the expectation of achieving profit, benefit, or growth.

Origin of investment

Language of origin: Latin

Root word: investire

Original meaning: to clothe, cover, or surround

How it evolved: Originally used to describe the ceremonial act of clothing someone in official garments, the term expanded to include the idea of committing resources toward future returns.

Derived from the Latin verb 'investire,' meaning 'to clothe,' later evolving to signify the act of committing resources to secure future benefits.

First known use: 15th century

How to Remember investment

Imagine planting a seed (investment) in fertile soil and watching it grow into a fruitful tree (profit or advantage). Think of ‘in-vest’ as putting something ‘in’ a ‘vest’ for safekeeping and future benefit.

Synonyms for investment

Antonyms of investment

  • divestment
  • withdrawal
  • disinvestment
  • reduction
  • neglect

investment in a Sentence

  1. Her strategic investment in renewable energy projects yielded substantial financial and environmental returns over the years.
  2. Time investment in mastering quantitative reasoning can significantly boost your GRE score and analytical skills.
  3. The philanthropist's investment in education transformed the lives of countless underprivileged children.

investment in Literature & Culture

Investment frequently appears in literature and speeches as a metaphor for personal growth, societal progress, or economic prosperity, such as in President Franklin D. Roosevelt's discussions on public works during the New Deal era.

Usage Notes

It is important to distinguish between financial investment and metaphorical use, such as investing time or effort. The word often carries a positive connotation of growth or gain, but outcomes can vary based on risk and strategy.

Why investment Matters for GRE & SAT

Investment is a versatile term in GRE passages, often used in economics, business, or metaphorically to describe resource allocation. Understanding its nuance can help in analyzing arguments and identifying main ideas.

Word Family

invest (verb)
To allocate money, effort, or resources with the intention of gaining future returns.
investor (noun)
A person who commits resources into ventures expecting growth or profit.
investment-grade (adjective)
Relating to financial assets rated as suitable for investment by institutions.

Did You Know?

  • The phrase 'investment banking' first emerged in the 19th century during the rise of financial institutions that facilitated capital funding for industries.
  • Warren Buffett, one of the most famous investors, often remarks that the best investment one can make is in themselves, emphasizing education and self-improvement.
  • The term 'investment' is also used metaphorically in psychology, referring to emotional or cognitive resources devoted to relationships or goals.
  • allocate
  • venture
  • iconoclastic — challenging or overthrowing tradition or established beliefs
  • identify — To recognize or establish what something is
  • ideologue — a person who advocates an ideology
  • ideology — A system of ideas and ideals forming the basis of a theory

More Vocabulary Words Starting with I

  • iconoclastic — challenging or overthrowing tradition or established beliefs
  • iconoclastic — challenging or overthrowing tradition or established beliefs
  • identify — To recognize or establish what something is
  • identify — To recognize or be able to name someone or something
  • identify — To recognize or be able to name someone or something
  • identify — To recognize or establish what something is
  • ideologue — a person who advocates an ideology
  • ideologue — a person who advocates an ideology
  • ideology — A system of ideas and ideals forming the basis of a theory
  • ideology — A system of ideas and ideals forming the basis of a theory