TYPES OF FINANCIAL INVESTMENT
IMPORTANCE OF FINANCIAL INVESTMENT
- Beating the Inflation rate
- Saving for retirement
- Wealth creation and wealth management
- Putting your money to work
- Having more Financial resources
Maximizing shareholder value through long-term and short-term financial planning and the implementation of various strategies should essentially be the way forward for any organization. Everything from capital investment decisions to investment banking falls under the domain of finance.
A financial investment is an asset that you put money into with the hope that it will grow or appreciate into a larger sum of money. A few of the most common types of financial investments are CDs and bonds, which pay interest to the owners, or could be by way of investment in Equity shares or Convertible Preference Shares.
A company may borrow from commercial banks and other financial intermediaries or may issue debt securities in the capital markets through investment banks. A company may also choose to sell its shares to equity investors, especially when raising long-term funds for business expansions.