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Indirect investing means you do not buy directly the underlying, but you buy a derivative instead. For example, instead of buying Microsoft, Apple, IBM, Google, Amazon and some other technology stocks directly, you can buy them by purchasing a related mutual or exchange traded fund. In case of real estates, you can buy REITs for example - thus it provides you a way to get exposure to real estates without having a lot of money in your pocket.

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Q: What is indirect investing?
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Related questions

Should a gain on the sale of land be added to net income in calculating net cash flow from operating activities using the indirect method?

It should be deducted from operating activities and should be included in investing activities as dealing with assets is a part of investing activities.


What is meant by Indirect Investing?

The sale of a good or service by a third-party, such as a partner or affiliate, rather than a company's personnel. Indirect sales can allow a company to increase sales quickly without having to hire more sales personnel. In some cases, however, indirect sales may lead to reduced control of the brand message and poorer customer service because the company cannot manage indirect sales teams easily.


How you can treat capital work in progress in cash flows statement?

This would be treated as cash outflow in investing activities ....indirect method of cashflow statement ..Regards Aurangzaib Iqbal ACCA


What is the difference between direct and indirect influence?

Direct investing and indirect investing are two different approaches to participating in the financial markets. Here's an explanation of the key differences between the two: Direct Investing: Ownership: In direct investing, individuals directly purchase and own financial assets, such as stocks, bonds, real estate properties, or private equity investments. Control: Direct investors have direct control over their investment decisions. They can choose specific assets, manage their portfolios, and make adjustments as they see fit. Costs: Direct investing may involve lower fees and expenses, as there are no intermediaries involved. However, there might be transaction costs, brokerage fees, or other charges associated with buying and selling assets. Risk and Returns: Direct investors bear the full risk and potential returns of their investments. The performance of their portfolio depends on the performance of the individual assets they own. Flexibility: Direct investors have the flexibility to tailor their portfolios to their specific investment goals, risk tolerance, and preferences. Indirect Investing: Ownership: In indirect investing, individuals invest in financial assets through intermediaries, such as mutual funds, exchange-traded funds (ETFs), or managed accounts. They do not directly own the underlying assets but instead hold shares or units of the investment vehicle. Control: Indirect investors have limited control over the investment decisions made by the fund or account manager. The investment decisions are made by professionals managing the pooled money. Costs: Indirect investing may involve higher expenses than direct investing because of the fees charged by the intermediaries for managing the investment vehicle. Risk and Returns: Indirect investors share the risks and returns of the underlying assets held by the investment vehicle. The performance of the investment depends on the overall performance of the pooled assets. Diversification: Indirect investing often provides built-in diversification, as the investment vehicle typically holds a diversified portfolio of various assets. Simplicity: Indirect investing can be simpler and more convenient for those who prefer a hands-off approach to investing, as professionals manage the portfolio.


In Cash flow statement what is direct method and indirect method?

Direct and indirect method of preparing cash flow statement is same with only one difference which is under indirect method 'Cash flow from operating activities' is prepared by adjusting the net profit amount for non cash items while 'Cash flow from financing activities' and 'Cash flow from investing activities' is prepared in same manner in both methods.


What does indirect mean in a sentence?

Indirect means not direct. We got there by indirect means. The author used indirect characterization.


Where would the event purchased land for cash appear if at all on the indirect statement of cash flows?

Definition of 'Cash Flow From Investing Activities'An item on the cash flow statement that reports the aggregate change in a company's cash position resulting from any gains (or losses) from investments in the financial markets and operating subsidiaries, and changes resulting from amounts spent on investments in capital assets such as plant and equipment. As per above mentioned definition, purchase of land will be appear in investing activties under indirect as well as direct method of Cash Flow Statement.


What is an example of an indirect form of funding?

the indirect form is indirect form hahaha :)


What is the comparative of indirect?

the most indirect. This is the most indirect route ever to the airport


The country being described has a government that most resembles which type of democracy?

A direct democracy


What is indirect counting?

when you count indirect.


Can passive voice be direct or indirect?

Indirect.