Economy and Business Votes

Posts Tagged ‘financial investment’

The financial investment is the investment a company makes in the financial market for which this company is looking for a profit. Financial Investment: Different Types can be classified as a financial investment nature or degree of relationship as providing the information. According to nature, an investment may be an action that is quoted on the Stock Exchange, an obligation or a fixed income security is issued by other entities, loan or trade credit which the company grants a term deposit in depository institutions; or a deposit made.

Depending on the degree of bond that provides financial investment, an investment portfolio can be a control that was for investments in other companies over which it exercises some influence, or a portfolio of investments consisting of income that is intended to raise revenue or speculate. In addition, a financial investment can be classified by duration. According to this classification, a financial investment may be temporary and remains in the company for less than one year, or a long term investment that remains in the company for more than a year.

Financial Investment: What does it do? A financial investment is not has a direct economic role. However, this investment plays a very important economic function, from enabling the transfer of funds and risks.

Once your stock account is ready and you can make sale or purchase of shares, then the hardest part of the investment is to choose a hero who will give the best results for us. Because the stock is a sign of our ownership of the company, so it’s good to think like business owners (business owner). Before determining which companies are willing to buy, do an investigation prior to the fundamentals of the company that you seek.

There are hundreds of companies listed in Indonesia Stock Exchange (BEI). You can start by sorting the companies with which you understand the field of business or companies that have products and superior service. Choose a company that you expect to continue to grow for 10, 20, 30 years into the future. Furthermore, the sorting based management and owners. Choose a company that is managed by a capable management team. Avoid companies that have a trend of “strange”, for example, when a coal company coal commodity price rises but its stock price declined.

There is also a good idea to choose a company owned by government or professional well-known business group. Government-owned company (SOE) is usually “required” for profitable and contribute to the state through the receipt of dividends. Avoid companies that are owned (managed) by business groups that have a less good reputation. Be careful because they not infrequently do the manipulation of financial statements or perform tricks on a rough financial engineering.

If you’re interested in learning more fundamental analysis, please read the book The Intelligent Investor by Benjamin Graham, published by HarperBusiness Essentials. Originally, the book was published in 1973, but rewritten in 2003. Book Henry Markowitz, Portfolio Selection: Efficient Diversification of Investments, published by Yale University Press also deserve to be a reference. In the meantime, if you’d prefer to technical analysis, I suggest you read the book Technical Analysis of the Financial Markets by John Murphy, published by the New York Institute of Finance (1986). There is also a suggested book Technical Analysis A to Z by Stephen Achelis (2003) – but I’ve never read. About bandarmologi analysis, so far seems to have no special writing a book about it.

You also must believe that your product sells the world’s number one – yourself!. I once asked, “How can we both be able to sell products in the world’s number one?” The answer is that every person is unique. No one else in the world who like me or you. Although it may be considered selfish, I acknowledge that no matter what I sell – homes, computers, real estate or automobile, I will remain the number one selling product in the world. I would feel this way if I was a certified public accountant, lawyer or doctor. No matter what I do for a living, I’ll rack my brains to think that is number one. If you do not think like that, there will be no one else could think of me like that too

I think it’s important for you to know that you are unique. Once you know, you will realize how many changes are made in determining whether the prospect will buy your products. Let’s face it, each of us has a monopoly in the combination of the unique nature of our own.

In addition to profitability, we must take into account the assumed risk to investment and the ability to convert assets into cash. Before investing, consider the current financial situation and any compromise that may arise in the future.

Investors did not opt for high risk investments without having a steady income and insurance and a certain amount of money available if investments drop.

There are various alternatives for the company to invest in their idle resources, such as short-term credits granted by the company to individuals or other companies, the charges in the short term, stock, treasury bills, bonds and all with the intent to sell in a period less than one year.

The more risk, more performance and vice versa if we want greater security for the invested capital, the risk is lower. Nor is it desirable to invest in something that is not understood.