Commercial Investment

DEFINITION of 'Commercial Investment'

An investment in a for-profit enterprise involved in the buying and/or selling of goods and/or services that is expected to generate cash flow. A commercial investment can be assumed by an individual, group or institution. Frequently, a commercial investment is shared by a group of investors combining assets in order to fund the investment.


BREAKING DOWN 'Commercial Investment'

A commercial investment occurs where an investor commits money or capital to purchase, either entirely or a percentage of, a for-profit property or business. Examples of commercial investments include different types of real estate properties, such as apartment complexes, hotels or industrial complexes.

RELATED TERMS
  1. Commercial Real Estate

    Property that is used solely for business purposes. Examples ...
  2. Investment Real Estate

    Real estate that generates income or is otherwise intended for ...
  3. Asset

    1. A resource with economic value that an individual, corporation ...
  4. Real Estate Operating Company - ...

    A company that invests in real estate and whose shares trade ...
  5. Operating Cash Flow - OCF

    Operating Cash Flow (or OCF) is a measure of the amount of cash ...
  6. Appreciation

    An increase in the value of an asset over time. The increase ...
Related Articles
  1. Insurance

    The Rise Of The Modern Investment Bank

    Get to know a little bit about the institutions whose actions help to guide free markets.
  2. Entrepreneurship

    Prepare To Sell Your Business

    Follow these tips to ensure you get the most out of your hard work.
  3. Personal Finance

    Real Estate Speculation In College Towns

    Is this an investing option you should consider? Find out here.
  4. Home & Auto

    7 Steps To A Hot Commercial Real Estate Deal

    For savvy real estate investors, times of lower prices reveal investment opportunity.
  5. Entrepreneurship

    Find Fortune In Commercial Real Estate

    Investing in big buildings means big money - and bigger risks.
  6. Options & Futures

    Defeasance Reduces Commercial Real Estate Fees

    Try this alternative to short-term variable-rate financing when using leverage to buy property.
  7. Home & Auto

    Tax Breaks For Second-Home Owners

    The tax rules on a second home vary, depending on how the property is used.
  8. Investing Basics

    How You Make Money In Real Estate

    No matter what anyone tells you, the basic ways that money is made through real estate haven’t changed in centuries.
  9. Investing Basics

    Defining The 3 Types Of Investments

    Investments can be divided into three distinct groups – ownership, lending and cash equivalents.
  10. Investing Basics

    The Complete Guide to Financing an Investment Property

    If you're considering adding an investment property to your portfolio, you need to know what your options are for financing its purchase.
RELATED FAQS
  1. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  2. What is securitization?

    Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming ... Read Full Answer >>
  3. Can hedge funds trade penny stocks?

    Hedge funds can trade penny stocks. In fact, hedge funds can trade in just about any type of security, including medium- ... Read Full Answer >>
  4. Can hedge funds outperform the market?

    Generating returns that exceed those provided by the broader market is the goal of nearly every investor. However, the methods ... Read Full Answer >>
  5. Where do penny stocks trade?

    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
  6. Where can I buy penny stocks?

    Some penny stocks, those using the definition of trading for less than $5 per share, are traded on regular exchanges such ... Read Full Answer >>
Hot Definitions
  1. Short Selling

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is ...
  2. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  3. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  4. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  6. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center