Investing involves investing capital (money) in projects or activities that are expected to generate positive returns over time.
The type of profit generated depends on the type of project or asset; real estate can bring both rent and capital gains; many stocks pay quarterly dividends; Bonds usually pay regular interest.
In investing, risk and return are two sides of the same coin; low risk usually means low expected return, while higher return usually comes with higher risk.
Investors can act independently or use the services of a professional money manager.
Whether the purchase of a security qualifies as an investment or a speculation depends on three factors: the amount of risk taken, the holding period, and the source of income.