What does the term "investing" refer to?

The term "investing" refers to allocating resources to generate income or profit over time. This process typically involves putting money into various financial assets, such as stocks, bonds, real estate, or other vehicles that are expected to provide a return through appreciation or income, such as dividends or interest.

Investing is fundamentally about constructing a strategy to grow wealth, unlike saving, which focuses on retaining cash for future use, such as emergencies. While buying and selling stock options can be a form of investing, the broader definition encompasses a variety of assets and approaches aimed at generating future income, making it a more comprehensive understanding of the concept. Thus, option B aligns perfectly with the essence of investing as it highlights the proactive use of capital to create financial growth.