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.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
investment income — n: income (as interest, dividends, annuities, or royalties) that is not derived in the ordinary course of a trade or business Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
Investment income — The revenue from a portfolio of invested assets. The New York Times Financial Glossary * * * investment income investment income ➔ income * * * investment income UK US noun [C or U] FINANCE ► income that comes from investments in shares, bonds,… … Financial and business terms
investment income — The revenue from a portfolio of invested assets. Bloomberg Financial Dictionary * * * investment income investment income ➔ income * * * investment income UK US noun [C or U] FINANCE ► income that comes from investments in shares, bonds, etc.… … Financial and business terms
investment income — 1) A person s income derived from investments. 2) The income of a business derived from its outside investments rather than from its trading activities … Big dictionary of business and management
investment income — /ɪn vestmənt ˌɪnkʌm/ noun income (such as interest and dividends) from investments. Compare earned income … Dictionary of banking and finance
Net Investment Income — Income received from investment assets (before taxes) such as bonds, stocks, mutual funds, loans and other investments (less related expenses). The individual tax rate on net investment income depends on whether it is interest income, dividend… … Investment dictionary
Franked Investment Income — Income that is received as a tax free distribution by one company in the U.K. from another. This income is typically tax free to the receiving firm and is usually distributed in the form of a dividend. Franked investment income was introduced in… … Investment dictionary
unfranked investment income — Investment income received by a company that has suffered income tax at source, e.g. debenture interest received. Unfranked investment income is the net amount received plus the income tax suffered … Accounting dictionary
franked investment income — When a company receives a dividend from another company it will also receive the appropriate tax credit which can then be offset against ACT on its own distributions in the same period or carried forward to the next accounting period. Tax losses… … Law dictionary
franked investment income — is dividends received from a UK company. It does not matter whether the dividend is a preference or ordinary dividend. For a corporate investor, franked investment income is free of any further corporation tax, on the basis that the company… … Financial and business terms