Investment demand is what it sounds like: demand for investment.
So...who’s demanding that investment? Businesses. They need you to invest in them so that they can expand, making both you and them money.
Some businesses might need computers and desks, while others need factory equipment and warehousing. Entities needing this kind of capital pay for your having invested in them in two primary ways: by writing debt to investors, i.e. selling them bonds (which are promises to pay back principal and then rent on that principal, i.e. interest, along the way), and selling equity to investors, i.e. a slice of ownership in that entity.
When investment demand is low, businesses aren’t currently in the business of expanding, but are either just trying to stay afloat, or are shrinking (which is generally bad for the economy and the stock market...especially in such a globally connected world).
When investment demand is high, it means businesses are doing the feel-good dance, because the economy is humming along swimmingly, allowing them to grow, which brings in more profits.
Related or Semi-related Video
Econ: What is Net Investment?0 Views
And finance Allah shmoop What is net investment Oh well
Net investment is an important expense for trap He's artists
and for butterfly catchers it's also a term in finance
that refers to the amount of money a company spends
on new capital investments You know stuff like real estate
or new factory construction and fresh equipment purchases Well the
Net part means it leaves out any spending that goes
to replace old stuff It's gotten you know run down
So let's say you own a factory that makes meat
flavored soda Amazingly you had a big hit with your
diet pastrami flavor Last year it left you with some
money to spend well The property next door to your
factory contains an old pet cemetery You want to build
an extension to your facility to ramp up production of
your new lemon lime bacon flavor First step by the
pet cemetery from that spooky guy in overalls who owns
it that cost you a million dollars Second you have
to relocate all the rovers and Coco's and Mr Peabody's
currently you know interred there another million box time to
build the new plant That's eight million there plus the
machines and other equipment at another two million or so
All right well separately you need to replace some run
down equipment at the original plant Your salami extractor is
on its last legs and one of your venison carbonate
er's broke down So there are going to cost the
further three million bucks or so to replace So all
told you've spent fifteen million dollars in investment in capital
assets That's your gross investment figure But three million of
that fifteen million was to replace old stuff that had
worn down You'd already accounted for it on a regular
basis through depreciation So back that three million box out
which leaves you twelve million dollars in net investment Net
investment represents the amount your company spends on brand new
investment Both fixed investment on physical capital and inventory investment
yet includes inventory well to calculate figure take gross investment
or the spending on everything In this case it's fifteen
million gross Then you subtract replacement investment like the amount
to replace capital goods that have depreciated like three million
box In your case the salami extractor in the venison
carbonate er right those things once you pull out that
replacement spending Then you're left with the twelve million dollars
in net investment It also leaves you with a factory
that relies on meat processing built on an old add 00:02:28.77 --> [endTime] so much very good luck with that
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