Monday, June 6, 2016

Investment Vehicles

The capital market is very important for process of financial flow, business operation, securities market, stock, bond, and other company investment. However, getting capital gain in investment, they focus on instruments that can be used to grab those profit in the investment system. That is called investment vehicle, any ways or financial instruments allowing us to earn money through their goal successfully. Instrument in investment is divided into 4 ways or types:

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  1. Debt Investment
    Earning from all kinds of financial debt via the following tools:
    a. Certificate of Deposit - CoD:
    b. Money Market - MM :
    c. Bond : government bond, state bond, company bond, ...
    d. Private loan / Lending:
  2. Equity Investment
    All kinds of investing return from equity, assets, real estate, or securities markets such tools:
    a. Stocks : common and preferred stock
    b. Derivative Securities : option, future
    c. Real Estate investment
  3. Insurance Base Investment
    Investment which is full up with interest rate return from saving as insurance base such as
    Annuity : saving with insurance agency as retirement plan
    Fixed Annuity: fixed rate, short term, low returns, low risk
    Variable Annuity: flexible payment and return, high returns, high risk, long term, etc
  4. Company Base Investment
    Investing in
    a. financial companies
    b. market agencies
    c. private cooperation
    d. sole proprietorship
    e. Business: SME, etc.

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