1. An asset on the balance sheet that refers to the shares held in a company or loans granted to other companies, which do not amount to or confer a controlling interest. The Act requires these to be split into listed and unlisted investments, and this is usually done in the notes to the company’s financial statements. Once a company controls another company then that company’s balance sheet and income statement must be “consolidated” to produce a set of group financial statements.
  2. The purchase of an asset by an investor (who could be a natural person or a juristic person like a company) with the intention of generating a return. The return is divided into a capital gain and an income. For example: a property is an investment which can have a capital gain and where rent is the income. A fixed interest deposit at a bank is an investment which has no capital gain but pays an income in the form of interest.
All information and data contained within the PDSnet Glossary terms is for informational and educational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet glossary terms is based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any glossary term for any reason.« Back to Glossary Index