An investment is the commitment of money or capital, usually over the long-term, to buy financial or real assets in order to obtain profitable returns in the form of capital appreciation of those assets of current interest and dividend income. An investment involves the deferring of current consumption for future benefits. With the exception of investing in a risk-free investment of short-term government Treasury Bills, all other investments come with some form of risks. The level of the risks should be commensurate with the potential returns of an investment although in some cases that is not the case.

In contrast, gambling or speculation involves putting money into a short-term scheme in the hope of securing a financial gain. Gambling is the wagering of money or staking of something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods. Speculation is the practice of engaging in risky financial transactions in the short and medium-term to obtain a profit from the fluctuation in the market value of that asset. These assets can be financial like shares or bonds, or it can be real like real estate and collectibles.