Malinvestment

usgb/ˌmæl.ɪnˈvɛst.mənt/
noun

A situation where money is invested in projects that do not produce profitable results.

The company's expansion plan turned out to be a malinvestment, leading to significant financial losses.
Visual representation of "malinvestment" - A situation where money is invested in projects that do not produce profitable results.

Often appears as...

  • capital misallocation
  • investment failure

Usage tips

Formal

general, economic theory, investment strategy

Definition 1 of 1
Visual representation of "malinvestment"
LampPro Tip 1/3

Understanding Context

It's essential to analyze market trends before making investments to avoid malinvestment.

Illustration for Understanding Context
Many investors ignore market signals leading to malinvestment.
LampPro Tip 2/3

Investment Due Diligence

Conduct thorough research before investing to ensure that your investments are wise and productive.

Illustration for Investment Due Diligence
Neglecting due diligence may result in malinvestment.
LampPro Tip 3/3

Identifying Risks

Recognizing potential risks can help prevent malinvestment.

Illustration for Identifying Risks
Always assess market risks before committing capital.
Visual representation of the word "Malinvestment"

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