Income+Investing

Ho Soo Jin, Andy Chung =**What is INVESTMENT INCOME?**=

1. Definition of 'Investment Income' Income coming from interest payments, dividends, capital gains collected upon the sale of a security or other assets, and any other profit that is made through an investment vehicle of any kind.

Generally, most people earn a large portion of their total net income through employment income. However, disciplined saving and investment in the financial markets can grow moderate savings into large investment portfolios, yielding an investor a large annual investment income.

In income statements of publicly traded companies, you will commonly see an item called investment income (or losses); this is where the company reports the portion of the net income that was obtained through investments made with surplus cash as opposed to being earned with the company's usual line of business.

2. Investment income is any type of financial gains that are realized from any type of investmentmade by an individual or business. In order to have investment income, the investment must generate revenue above and beyond the original assets used by the investor to secure the asset.Investment income may be in the form of interest, dividend payment issued in connection with stock ownership, or any other type of capital gains that are realized from any type of security.

3. Investment income -- sometimes called unearned income -- is the money that you collect from your investments. It may include stock dividends, mutual fund distributions, and interest from CDs, interest-bearing bank accounts, bonds, and other debt instruments. You may also have rental income from real estate or other assets you own for investment purposes. Capital gains you realize from selling investments for more than you paid to acquire them may also be considered investment income. Your net investment income is what you have left over after you subtract your investment expenses, such as fees and commissions.

This video shows how income investment works.
=Test=

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In income statements of publicly traded companies, you will commonly see an item called investment income (or losses); this is where the company reports the portion of the net income that was obtained through investments made with _ cash as opposed to being earned with the company's usual line of business.=====