The investment business is that an economic entity invests temporarily surplus funds in promising investment instruments.
Advantages and disadvantages
Investment business is an attractive line of business with the following advantages:
The ability to get started with a small start-up capital. A businessman independently determines the amount of investments, guided by the rule that the amount to be invested is the amount that he is not afraid to lose.
A chance to implement the entrepreneur's creative ideas, to influence the work of the chosen organization.
Possibility to choose between various investment objects and numerous business projects.
Future-oriented. As the investment portfolio grows and diversifies, the investor's passive income grows, which can provide a comfortable existence for many years.
Unlimited profits. The amount of the investor's income is unlimited, it all depends on how well the object is chosen for investment.
Disadvantages of investment business:
The minimum investment brings insignificant income. To receive tangible dividends, you need to have a large initial capital.
An ordinary investor cannot influence the development of the company. The management of the organization determines the range of products, production and personnel policy independently.
Types of business investments
All forms of business investment can be classified according to four qualifications:
By ownership
If the investor has significant capital, he can invest in his own business. This path requires certain knowledge, personal effort and time. The advantages of this choice include the possibility of self-realization and getting maximum profit. Investments in someone else's business do not require personal participation in its development; they are associated with less risk for the investor. The disadvantages are the difficulty in choosing a project, the inability to influence the development of the company.
More here - https://en.wikipedia.org/wiki/Investment_company
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