Investment refers to the allocation of resources, typically money, into assets, projects, or ventures with the expectation of generating a return or profit over time. This can include purchasing stocks, bonds, real estate, or starting a business. The underlying principle of investment is to use capital to create additional wealth or income, acknowledging that it often involves taking risks, as the value of investments can fluctuate based on market conditions, economic factors, and managerial performance. Investors typically assess potential returns against the risks involved, seeking to optimize their portfolios in terms of risk and return. Investments can be classified into various types, including short-term and long-term, as well as liquid and illiquid assets.
Carnival's stock saw a significant drop, decreasing by 7.7% to close at $24.07, after an intraday low of $23.42. Stocks began the day at $25.59, fueling investor caution as over…