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Investment can be designed as asset acquisition by an enterprise or individual for the purpose of capital appreciation and income generation.
Organization with corporate or non-corporate bodies in the cause in their business operations. Apply all or some of their resources in acquiring assets to be held for capital maximization, income generation or other purposes such ad securing competitive advantage business organization, individuals and households often employ fund boy immediately needed in the conduct of regular operations profitable without actually engaging or being involved in the management of such funds in form of trade, production or provision of services such as equity securities, debt securities or real assets such as land and building.
CLASSIFICATION OF INVESTMENT.
Short term investment.
This investment holds temporal in places of cash which can be converted into cash when current financing needs makes such conversion desirable and intended to be held for not more than one(1) year. Short term investments may be in ordinary shares, preference shares, binds, treasury bills, commercial paper, bankers acceptance, finished goods and services e.t.c. They are rapidly and in intention of the manager to hold such ad investment for not more than one(1) year.Long term investment.
This are investment that exist where investor decides to employ funds in long periods of time ti earn income. Long term investment nat include debts, equity, securities and investment properties. Investment properties represent an entire investment in lands and building primarily for their investment potentials (income generation a and capital appreciation) and not occupied substantially for the use in the enterprise itself in its operation or a member if the group of companies. In Nigeria, a property deemed ti qualify as an investment property of not more than 15% of space is occupied by the owners of another enterprise by the group.
TYPES OF INVESTMENT.
Expansion of existing of existing business.
These may take form of adding capital to existing product in order to increase the ability of the organization.Undertaking of a new business.
This may come inform of acquiring of existing business.Replacement in modernization of business.
This is required when there is need to change outdated equipments for more economic operations.Mutually exclusive investment.
They have the same objectives and if one is chosen, the other will have to be excluded.Independent investment.
This serve different purpose and depending on their profitability of fund in organization can undertake all the independent investment of their funds.Contingent investment.
This is the choice of one investment can necessitate undertaking of one or more other investment. All project undertaken to perform a specific goal.
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