Investment revenues definition
/What are Investment Revenues?
Investment revenues refers to the income earned from invested funds. Investment revenues are usually considered to be incidental revenues when compared to those generated by the operations of a business, and so are segregated in a separate account. There are four types of investment revenues, which are as follows:
Interest. This is usually the income earned on investments in debt securities, though it may also be derived from money loaned directly to borrowers. Other sources of interest income are certifications of deposit and savings accounts.
Rental income. This is the payments received from tenants when a business owns rental property and rents it out to third parties.
Dividends. This is payments made by corporations to their shareholders, which are paid out on a per-share basis. The amount paid is set by the issuer’s board of directors, and is usually paid either quarterly or annually.
Capital gains. This is any revenue realized from the sale of an asset for more than was originally paid for it. For example, if a business buys a security for $100 and later sells it (net of commissions) for $20, then it has experienced a $20 capital gain.