What is an investment?

Question

I would like to know about an investment. Can someone guide me? Thank YOu~!

Answer 1

In " Investment " as a layman - this would covers the following fields of study:

a) Risk and Rate of Return - meaning that there are risk in ANY kind of investment such as buying land, property, machineries (Fixed Assets), buying derivatives of Company Shares, Stocks, Bonds (Derivatives) and the latter covers the subject of measuring / control of the returns (Profits);

b) Evaluation of Corporate Shares, Stocks and Bonds - as an investment between Organization to Organization as well as with individual whom would like to decide in Personal investment to BUY prospective organization's Shares and Stocks as a future Share/Stake holders,

c) Capital Budgeting - As a Financial Advisor or Manager: To draft out a Budget Plan so as to know what/how length of time it takes for the Investment (of buying over the investment) to be paid up or recovered.

d) Cost of Capital - Any organization whom would be likely to raise money for Investment, knows that BORROWING from the Banks, Financial Institution Plus Raising Capital through the issue of Shares, Bonds from the public - are the alternative financial instruments to achieve this purpose. The Financial Manager would need to knwo what is the Cost of Capital in say the next 5 years / 10 years added with the facts of Inflations, Monetary Exchange Rate, International Currency Rates, etc.

e) Other Finance Marketing instruments - that the Firm can do to hedge themselves from continuing creating values to their current Assets and Invetsment.


Regards, Henry REA

Answer 2

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Answer 3

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