Financial Terms Dictionary: ELI5 Version - Investing

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a quintessential facet of finance, represents the intentional allocation of capital, usually in the form of financial assets, with the objective of generating potential returns and wealth accumulation over an extended time horizon. Driven by the principles of risk and return, investing involves the deployment of funds into various asset classes, such as stocks, bonds, real estate, commodities, and alternative investments, with the aim of capital appreciation, income generation, or both.