Which of the following is an example of financial investment?

Question

an individual purchases machinery to be used in production
an individual purchases stock with the intent to sell it later at a higher price
an individual purchases a brand new car to drive
an individual purchases ice cream to be consumed immediately

Answer 1

An example of financial investment is an individual purchasing stock with the intent to sell it later at a higher price. This action involves allocating money with the expectation of generating a return in the future, which is a key characteristic of financial investments.