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LSDefine
Simple English definitions for legal terms
invest
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A quick definition of invest:
Invest: To put money into something with the goal of making more money in the future. This could be investing in a business, property, stocks, or other things that can generate income. Investing is different from giving a gift or a loan because it is done with the intention of making a profit. The word "invest" comes from a Latin word that means "to clothe or adorn" and was used in the past to describe giving someone land in exchange for their service.
A more thorough explanation:
Investing means putting money into something with the intention of making a profit or generating income. This can include investing in businesses, property, stocks, or other securities.
For example, if you invest in a company by buying their stock, you hope that the value of the stock will increase over time, allowing you to sell it for a profit. Similarly, if you invest in a rental property, you hope to generate income through rent payments.
Investing is different from giving a gift or making a loan. A gift is given without the expectation of receiving anything in return, while a loan is expected to be paid back with interest.
The word "invest" comes from the Latin word "investire," which means to clothe or adorn. In medieval Europe, the term "enfeoff" was used to describe the practice of giving land in exchange for pledged service. Both "enfeoff" and "invest" signify putting someone in possession of something upon taking an oath of loyalty.