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Investment Term Definition

The term of an investment has two distinct definitions.

  1. The life cycle a specific asset or liability has. In this care, the value is predicted to either increase or decrease.
  2. The timeframe the life cycle of an investment has. For example, in a debt investment, this would be the amount of time it takes to pay the lender back. On the other hand, in an equity investment, this is the amount of time that passes between acquisition of the investment and sale of the investment.