2007-04-26 20:28:51 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
A business can loan money to invest in a factory or new software. They have a debt to make money from this investment.
So:
A debt costs money (interest)
An investment makes money...hopefully.
Or:
If I gave you money you could say; I invest in you.
And you would be in debt to me.
Same money....but at different ends of the table.
2007-04-26 20:36:28 · answer #1 · answered by Puppy Zwolle 7 · 0⤊ 0⤋
I think you meant 'debt' by writing 'dept'. Anyway here's my answer. A debt is money you owe to somebody because you borrowed it from him/her. Investment is money put away in mutual fund,shares of companies,initial money put in by a person either singly or in association with a group of persons to start an enterpreneurship. Where's Debt is a liability, investment is an asset.
2007-04-26 20:38:30 · answer #2 · answered by Bulty 3 · 0⤊ 0⤋
Like what everyone has mentioned, debt is borrowing money for present consumption, and in return, the borrower is required to pay it back with interest. Investment is to defer consumption by lending it out, and receive a return (e.g. interest) as compensation. Different types of investment have different rates of return and different ways of investing also have different rates of return.
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2007-04-26 22:22:19 · answer #3 · answered by stock_logic 1 · 0⤊ 0⤋
Debt = you owe money
Investment = you earn money
2007-04-26 20:31:49 · answer #4 · answered by Geeeyaaa 4 · 0⤊ 0⤋