Which is an example of an investment?

Buying stocks is an example of an investment because it involves purchasing a financial asset with the expectation that it will generate a return over time. When you buy stocks, you are buying a share of ownership in a company, which can appreciate in value and sometimes provide dividends, thus generating potential profits. Investments are generally considered assets that are purchased with the hope of generating income or increasing in value over time, distinguishing them from purchases that are meant for immediate consumption or necessity.

In contrast, buying groceries, purchasing a car, and paying rent are expenditures for immediate needs or services and do not provide a financial return in the same way that investments do. Groceries are consumed, a car may depreciate in value, and rent is a recurring expense that does not create an asset. Therefore, only buying stocks fits the definition of an investment.