Investment is putting money into financial assets with the goal of earning a profit in the future. There are four main steps to the investment process: 1. Develop an investment policy by determining financial objectives and creating an emergency fund. 2. Analyze potential investment securities by evaluating industry type, risk level, and expected returns. 3. Value securities by estimating their future benefits and comparing to current market prices to determine attractiveness. 4. Construct a portfolio by selecting a diverse mix of assets that balance safety, growth, liquidity and meet the investor's goals. The portfolio should be regularly evaluated and adjusted if needed to keep optimizing performance.