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Why would a company invest in securities what provide no current cash flows?
Wiki User
∙ 9y ago
A company would invest in securities that provide no current cash flows, if the future looks promising. They can also use it to secure company loans.
Wiki User
∙ 9y ago
A company may invest in securities that do not provide current cash flows for various reasons. These securities could offer potential future cash flows or capital appreciation. Additionally, investing in such securities can diversify the company's investment portfolio and provide avenues for long-term growth. Furthermore, it allows the company to strategically allocate excess cash or idle funds to create further value.
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What sort of investment company is Scottrade?
Scottrade is actually an online investment company. They provide the user with tools to learn how to trade securities on the stock market and guide the user in how to select the best type of securities to invest in.
Can Indian mutual fund invest in shares and securities abroad?
Yes, they can. But, not all mutual funds can invest in shares and securities abroad. They can only do so, if the mutual fund scheme has it in the fund objectives.
What is the difference between a holding company and an investment company?
A holding company is a company that owns the outstanding stock of other companies, giving it control over those companies' operations and management. An investment company, on the other hand, is a company that pools money from investors and uses that money to buy securities, such as stocks, bonds, and real estate. The primary business of an investment company is to invest in these securities and manage them to generate income and capital appreciation for the investors. In summary, a holding company acquires and controls other companies, while an investment company pools money from investors to invest in securities. My Recommendation: 𝐡𝐭𝐭𝐩𝐬://𝐰𝐰𝐰.𝐝𝐢𝐠𝐢𝐬𝐭𝐨𝐫𝐞𝟐𝟒.𝐜𝐨𝐦/𝐫𝐞𝐝𝐢𝐫/𝟑𝟕𝟐𝟓𝟕𝟔/𝐝𝐡𝐫𝐮𝐯𝐫𝐚𝐣_𝟔𝟎𝟗𝟏/
Why should investment securities even be separated into different classifications?
The given criteria of company's ability to do as it wishes and its intention to do what it states should definitely not be the sole criteria to be used for classifying investment securities. It is extremely important to classify securities based on their ability and purpose in order to help investors identify the right kind of securities to invest in and make a balanced portfolio.
How do the various types of mutual funds differ?
Stock, bond, and hybrid funds invest in long-term securities, and as such are known as long-term funds. Hybrid funds invest in a combination of stocks, bonds, and other securities
What does invest mean in government?
Invest, in government, means to use the taxes paid by its citizens. These can be in forms of purchases of equipment for government use, or government securities.
What is metual fund?
n.An investment company that continually offers new shares and buys existing shares back at the request of the shareholder and uses its capital to invest in diversified securities of other companies.
What is the invest the pooled contributions from many investors in different types of securities to decrease risk?
Mutual funds
Where do insurance company invest?
Most US insurers invest primarily in investment grade fixed income securities with a much smaller allocation to equities. The challenges posed to insurance companies in the investment process is outlined in my new book, "Uncertain Times: A Chief Investment Officer's Journey," available on Amazon.
When you own a mutual fund what exactly do you own?
Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.
Why do people invest in fixed income securities?
Main purpose of investing in fixed income securities is regular flow of return. It also has lower risk when compared to investment in shares/stocks.
What services are available from HDFC Securities?
HDFC Securities is a stock brokerage firm. These companies allow individuals and businesses to invest in the stock market. Visitors to HDFC Securities' official website can check their invested stocks or put money into a new one.
