Investment income represents the revenue or earnings an individual or institution generates from their investments. This type of income can arise from various sources including dividend payments from equities, interest from bonds or savings accounts, and capital gains realized by selling assets at a profit. Individuals often include investment income as part of their overall income for financial planning and tax purposes. For businesses, investment income might contribute to their financial statements under financial income, giving an insight into how well their invested capital is performing. For example, a person owning shares in a company might receive quarterly dividends, which represent their portion of the company's profits distributed to shareholders. Similarly, someone holding a bond may earn periodic interest payments representing the cost of borrowing paid by the bond issuer to the bondholder. Investment income is distinct from earned income, such as a salary, as it does not originate from one's labor or services but rather from holding or selling investments.