Interest, rents, royalties, dividends, capital gains, and other income derived from an asset are all examples of investment income.
Earnings from Investments
Simply explained, investment income is any money earned by selling something for a higher price than you bought for it. This is typically true of equities and real estate. It can, however, apply to treasures such as comic books, baseball cards, or that Picasso you discovered in Grandma's attic. In addition, the sale of a firm is usually considered investment income.
When a corporation awards you with stock options, the boundary between investment income and earned income might get blurred. However, when those options are exercised and sold, they are considered investment income.
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