Investment loss refers to the decrease in value of an asset or investment compared to its original purchase price. This can occur in various forms, such as stocks, bonds, or real estate. When an investor sells an asset for less than what they paid, they realize a loss, which can impact their overall financial health. Factors contributing to investment loss include market fluctuations, economic downturns, and poor company performance. Investors often seek to minimize these losses through diversification, which involves spreading investments across different asset classes, such as stocks, bonds, and real estate, to reduce risk.