Investment

INVESTMENTS In finance, the purchase of a financial product or otherwise item of value with an expectation of favorable upcoming returns. In general terms, investment means the use capital in the hope of making more coin. Category of coronation: [pic] Financial Instruments Equities: Equities be a type of security that represents the self-command in a company. Equities are traded (bought and sold) in stock markets. Alternatively, they dejection be purchased via the Initial Public Offering (IPO) route, i.e. directly from the company. put in equities is a good long-term investment filling as the returns on equities over a long eon horizon are generally higher than most other investment avenues. However, along with the possibility of greater returns comes greater risk. joint funds: A mutual fund allows a free radical of people to pool their money to defecateher and have it professionally managed, in keeping with a predetermined investment objective. This investment avenue is popular because of its cost-efficiency, risk-diversification, professional management and sound regulation. Bonds: Bonds are fixed income instruments which are issued for the purpose of raising capital.

Both close entities, such as companies, financial institutions, and the central or kingdom government and other government institutions use this instrument as a means of garnering funds. Deposits: Investing in bank or post-office deposits is a very common way of securing surplus funds. These instruments are at the low end of the risk-return spectrum. Cash equivalents: These are comparatively safe and highly liquid investment options. Treasury bills and money market funds are cash equivalents. Non-financial Instruments Real domain: With the ever-increasing cost of land, real estate has come up as a profitable investment proposition. Gold: The yellow metal is a preferred investment option, particularly when markets are volatile. Today,... If you want to get a full essay, order it on our website: Ordercustompaper.com

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