Financial investments refer to activities where economic entities invest funds in financial assets such as stocks, bonds, or other securities with the objective of earning a return or acquiring equity in another entity. These investments can be made to generate profit, diversify risks, or for strategic purposes. They are distinct from physical investments and often involve higher volatility due to their nature as marketable securities. Classification of financial assets under accounting standards typically includes those measured at amortized cost, fair value with changes in other comprehensive income, and fair value with changes in net income.