Investment methods

Investment methods



Contents

  • 1 investment
  • 2 investment methods
    • 2.1 Real estate investment
    • 2.2 dividends
    • 2.3 Investing in bonds

Investment

Investment in general is a sacrifice of the current benefit of money, which could be achieved through satisfying immediate consumer needs, in the hope of obtaining greater benefit and greater satisfaction in the future. It should be noted that the investment is divided into two parts, namely real investment and financial investment, and these two types of Investing complements each other, and during this article we will introduce investment methods.

Investment methods

Real Estate Investment

It is one of the types of investments that are popular globally, especially in the Arab countries, as a result of not developing enough financial markets, and real estate investment is in two forms, namely, directly through building projects such as building hotels, resorts and residential buildings, or buying real estate such as lands and buildings, or indirectly, and that By investing in real estate investment funds.


Dividends

Shares are considered one of the most important investment tools of our time, and they are a great diversity in the advantages and rights that they provide to the investor. Shares are divided into two types: ordinary shares and preferred shares, and the types of preferred shares include the following:
  • Preferred bonus shares: The holder of these shares can obtain a percentage of the company's profits for the previous years, in which the dividends were not distributed.
  • Convertible shares: The holder of this shares can convert his preferred shares into ordinary shares, at an agreed date in the prospectus, and as the holder of these shares earns from the transfer, if the market value of the total ordinary shares he will acquire is greater than the market value of the preferred shares .

Investing in bonds

Investing in bonds is considered one of the most important sources of long-term investment, and bonds are defined as a debt certificate requiring the issuer to pay their face value on the due date, in addition to paying interest in the form of periodic amounts, in specific periods that may be annual or semi-annual, and the types of bonds include the following: :
  • Bonds according to the issuing party : These bonds are divided into two types, government bonds and business establishments bonds.
  • Bonds according to the age of the bond: These bonds are divided into three types, namely, short and medium term bonds and long term bonds.
  • Bonds according to the guarantee: These bonds are divided into two types, namely, bonds secured by mortgage, and bonds not secured by mortgage.
  • Bonds according to the interest rate determination method: They are divided into three types: bonds with a fixed interest rate, bonds with a variable interest rate, and bonds with a zero interest rate.

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