We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What are Investing Activities?

By Christy Bieber
Updated: Feb 06, 2024

Investing activities is a term for a broad group of activities that encompasses any money spent on something likely to increase in value. Most commonly, investing activities involve the purchase of stocks, bonds, certificates of deposit, mutual funds, or real estate. Investment activities can also include putting money into a savings account, or even investing in art or other tangible goods that the individual believes is likely to rise in value.

When money is spent, it can be spent on either assets or liabilities. A liability is something that does not increase in value. For example, money spent to buy a pizza, a coffee table, or a new car, is generally not considered an investment or an investment activity. The money invested in this item is spent, and the item is not going to increase in value or provide a return on your initial expenditure.

Some purchases, however, are designed to provide you with a return on your investment. A return on your investment means that the initial investment is ideally going to grow or to give you back more than you put into it. The increase in money, or the return on the investment, can come from interest paid, from a rise in the price of the stock or mutual fund, from dividends paid by the company, or from the actual value of the asset itself increasing. For example, if a given stock is bought for $10 US Dollars (USD) per share and then it rises in price to $11 USD per share, the individual experienced a $1 USD return on his investment, or a 10 percent return on his investment. If a piece of real estate is purchased for $100,000 USD and the value on the market rises to $150,000 USD, the individual received a $50,000 USD return on his investment, or a 50 percent return.

Investing activities are an important part of financial planning. A person's investing activities should ideally produce sufficient income for that individual to live off of in retirement when he is no longer earning a paycheck. For example, if an individual wishes to be able to live on $50,000 USD per year, then most experts recommend he save enough that the return on investment — in the form of interest or other income paid — be enough to generate that $50,000 USD so he does not have to touch the principal of his investments. As such, when engaging in investing activities, it is important both to devote a sufficient sum of money to reach investment goals and to research investments carefully to ensure they are wise investment vehicles.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.