In general, to invest is to distribute money in the expectation of some benefit in the future – for example, investment in durable goods, in real estate by the service industry, in factories for manufacturing, in product development, and in research and development. However, this article focuses specifically on investment in financial assets.
In finance, the benefit from investment is called a return. The return may consist of a profit from the sale of property or an investment, or investment income including dividends, interests, rental income etc., or a combination of the two. The projected economic return is the appropriately discounted value of the future returns.
Investors generally expect higher returns from riskier investments. When we make a low risk investment, the return is also generally low.
Investors, particularly novices, are often advised to adopt a particular investment strategy and diversify their portfolio. Diversification has the statistical effect of reducing overall risk.
The United States of America (USA), commonly referred to as the United States (U.S.), America, and sometimes the States, is a federal republic consisting of 50 statesand a federal district. The 48 contiguous states and Washington, D.C., are in central North America between Canada and Mexico. The state of Alaska is located in the northwestern part of North America and the state of Hawaii is an archipelago in the mid-Pacific. The country also has five populated and nine unpopulated territories in the Pacific and the Caribbean. At 3.80 million square miles (9.85 million km2) and with around 318 million people, the United States is the world’s fourth-largest country by total area and third-largest by population. It is one of the world’s most ethnically diverse and multicultural nations, the product of large-scale immigration from many countries.The geography and climate of the United States is also extremely diverse, and it is home to a wide variety of wildlife.
The United States is a developed country and has the world’s largest national economy. The economy is fueled by an abundance of natural resources and high worker productivity. While the U.S. economy is considered post-industrial, it continues to be one of the world’s largest manufacturers. The country accounts for 37% of global military spending, being the world’s foremost economic and military power, a prominent political and cultural force, and a leader in scientific research and technological innovations.