👉 Preinvestment is a concept in finance that refers to the initial investment made before any future profits or dividends are earned. This preinvestment can be for various purposes, such as capitalizing on market conditions, generating liquidity, or setting up a business venture. The purpose of preinvestment is to ensure that the initial investment is made with a clear understanding and plan in mind, so it can be easily evaluated and used in future investments without additional expenses. This approach can also help prevent potential losses from unforeseen