What are the various types of investment decision?

What are the types of investment decisions?

There are four main financial decisions- Capital Budgeting or Long term Investment decision (Application of funds), Capital Structure or Financing decision (Procurement of funds), Dividend decision (Distribution of funds) and Working Capital Management Decision in order to accomplish goal of the firm viz., to maximize …

What are the 7 types of investments?

Contents

  • Stocks.
  • Bonds.
  • Mutual Funds.
  • Cash Equivalents.
  • Other Types of Investment Vehicles. Derivatives. Commodities. Real Estate.

What decision is an investment decision?

In this chapter we will discuss the second important decision area of financial management which is Investment Decision. Investment decision is concerned with optimum utilization of fund to maximize the wealth of the organization and in turn the wealth of its shareholders.

What are the 8 types of investment?

Eight types of saving and investment options include savings accounts, stocks, certificates of deposits, bonds, mutual funds, real estate, commodities and annuities.

What are the 5 different types of investments?

There are various types of investments: stocks, bonds, mutual funds, index funds, exchange-traded funds (ETFs) and options.

What are the investment decision process?

Definition: The Investment Decision relates to the decision made by the investors or the top level management with respect to the amount of funds to be deployed in the investment opportunities. Simply, selecting the type of assets in which the funds will be invested by the firm is termed as the investment decision.

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What is the major aspects of investment decision?

Investment decisions are made based on several factors: the current and potential market shares of the company, its technology, and the creation of value during the exit phase.

What is the role of investment decision?

The Investment Decision Maker’s main responsibility is to commit funds for the programme or project. The role represents senior management’s commitment to the programme or project and the requirements for regularity, propriety and value for money.

What is investment decision Class 12?

7. Investment Decision (Capital Budgeting Decision) This decision relates to careful selection of assets in which funds will be invested by the firms.