The Concept Of Financial Investment
Financial investment: It is an economic process that represents the investor owning one of the financial assets in order to achieve a large financial return in the future, and it enters in several areas, as we can define it as one of the types of investment associated with stocks, bonds, treasury bills and the trading of exchange-capable commercial tools.
Financial investment goals
Securing the future of the people and sectors managing the project, especially for the elderly who are on the verge of retirement. Achieve a large current income commensurate with the life and luxury of the investor. Aiming to find continuous and continuously increasing development of wealth by obtaining acceptable proportions of returns. Achieving a capital gain by protecting money from falling into the trap of purchasing power. Putting income under protection away from taxes imposed by legislation and regulations. Striving to develop and achieve wealth as much as possible
Financial investment tools
The financial market deals with financial investment through a set of main tools, the most important of which are: Shares: It is a financial instrument represented by a long-term securities commission, or in the form of Sukuk that have the right to the common shares within the ownership capital of the issuing body, and they are classified into ordinary and preferred shares. Bonds: It is a direct investment tool that has the full ability to trade in financial markets. It can also be defined as an instrument that has the character of a long-term loan issued by the companies that issue the bonds. Financial derivatives
Motives for financial investment
According to the legal standard, it is classified into: Private investment, and it is practiced by the natural and legal person with the aim of making a financial profit. Public investment, also called government investment, includes all plans implemented by the government, whether economic or social, in addition to development plans related to the political and intellectual directions. Foreign investment, which is the investment made by external bodies to become a necessary source of financing for any of the economic development projects, as is the case in developing countries. According to the criterion of economic activity, it includes: agricultural investment. Industrial investment. Service investment