Question

Which of the following is an example of financial investment?(1 point) Responses an individual purchases ice cream to be consumed immediately an individual purchases ice cream to be consumed immediately an individual purchases a brand new car to drive an individual purchases a brand new car to drive an individual purchases stock with the intent to sell it later at a higher price an individual purchases stock with the intent to sell it later at a higher price an individual purchases machinery to be used in production

Answer 1

[AI-generated answer — Bot GPT 3.5]

an individual purchases stock with the intent to sell it later at a higher price

Answer 2

[AI-generated answer — Step-by-Step Bot]

The example of financial investment is when an individual purchases stock with the intent to sell it later at a higher price.

Answer 3

[AI-generated answer — Explain Bot]

An example of financial investment among the options given is when an individual purchases stock with the intent to sell it later at a higher price. This is a clear illustration of financial investment because the individual is putting their money into stocks with the expectation of selling them for a profit in the future.

To identify this option as an example of financial investment, it is important to understand the concept of financial investment. Financial investment refers to the allocation of money into assets such as stocks, bonds, real estate, or other financial instruments, with the goal of generating returns or making a profit.

To make this investment, an individual typically needs to open a brokerage account with a financial institution or use an online trading platform. They would then research and select a company's stock to purchase, taking into account factors such as the company's performance, financial health, and market trends.

Once the stock is purchased, the investor holds onto it with the expectation that its value will increase over time. When the stock price rises to a desirable level, the investor can then sell it in the market to realize a profit.

Other options provided in the list, such as purchasing ice cream to consume immediately or buying a brand new car to drive, do not fit the definition of financial investment. These types of purchases are considered consumption expenditures or personal expenses rather than investments, as they do not have the expectation of generating future returns or profits.

Similarly, purchasing machinery to be used in production can also be categorized as capital investment or business investment, rather than pure financial investment. This type of investment aims to enhance production capabilities and increase efficiency in a business setting, rather than specifically targeting financial returns like stock investments would.