The best ways to invest



Contents

  • 1 investment
  • 2 best ways to invest
  • 3 The importance of investment
  • 4 drivers of investment
  • 5 References

Investment

Investment is considered an important means that depends on the role of people and establishments in using their money to implement various economic projects. Therefore, investment is an effective tool used to invest money in order to achieve profits, and investment may be a deducted part of private income in production with the aim of contributing to building capital. Investment can be defined as the transfer of advanced administrative technologies and capital in order to contribute to an administrative, social and economic development that leads to the development of a country through reliance on newly created companies and the use of national capital . [1]

The best ways to invest

The success of the investment in increasing the money depends on the use of a group of methods that help in this.
  • Treasury Bills (English: Treasury Bills): It is a type of financial instrument issued by the central bank on behalf of the government of the state, and the bank announces its prices periodically, and treasury bills are issued to its owner only, but the name of the buyer is not mentioned, so it is possible to transfer ownership From its current owner to another person, and no interest is paid on it but it provides financial returns that make up the apparent difference between its purchase price and its nominal price, and these permissions are free of any risk, because they have government support, and treasury bills are traded in an active market that contributes to increasing its liquidity. [2]
  • Negotiable Certificates of Deposit (in English: Negotiable Certificates of Deposit), known by the acronym (CD's); it is money deposited in a commercial bank for a certain period of time against the issuance of receipts for that, and certificates of deposit are defined as time periods for their entitlement according to the needs of investors, and upon the arrival of an appointment Eligibility The amount deposited shall be paid in addition to the interest incurred. [2]
  • Deposits between the companies ( in English: Inter-Corporate Deposits): a type of short - term deposits, applicable between the companies in order to obtain good returns, these deposits are divided into three types: [2]
    • Call Deposits: These are financial deposits that the lender can withdraw when a notice appears, and when this process is applied, it must wait three days to obtain the money.
    • Three Months Deposits: These are financial deposits that borrowers use to cope with insufficient money during a short period of time, and the interest rate for these deposits is affected by the interest rate issued by banks.
    • Six-month Deposits: These are financial deposits that extend for the maximum period; that is, 6 months, and are preferred by individuals who do not have surplus funds during a long-term period.
  • Securities negotiable ( in English: Marketable Securities): a group of equity or debt instruments Calcndhat, and include all in the stock market , it can be sold or purchased easily; therefore constitute these securities cash assets that accept trading, and recordedcostbuying them and add them taxes and bank commissions . [3] negotiable securities help companies maintain their cash balance, which is considered necessary because of the inability to achieve an ideal balance between external and internal cash flows, and these papers contribute to providing income for work, and when investingThe money in these papers is necessary to be careful and careful, as it is important that they are carefully chosen, which contributes to increasing their value quickly when requested. [2]
  • Investment funds in the financial market ( in English: Money Market Mutual Funds): The abbreviated symbol (MMMF); which is about investment funds carried out its investments in financial instruments withinfinancial market, such toolsboth securities issued bygovernmentwhich hasperiodmaturityup For one year, treasury bills, commercial papers, certificates of deposit and other acceptable financial instruments. [2]

The importance of investment

Investment is characterized by its importance affecting the world of finance and business, and this importance is summarized according to the following points: [4]
  • Investing contributes to setting future goals, by relying on its strategic dimensions, through the use of appropriate statistics and data, and knowing the risks involved in the investment.
  • Investment decisions depend on financial resources. Long-term investment requires the presence of fixed assets by relying on a group of resources, such as the facility's self- financing , or relying on external financing for the purpose of obtaining resources.
  • Investment affects the future of an enterprise, like investments used to develop productive capacity, because it changes the structure of the enterprise.

Motivation for investment

There are a range of economic motives for investment , and developed in conjunction with the developments that have affected the economy , the world, and has diversified with the remarkable diversity of the parties and investment objectives, and could be classified by economic motives for investment according to the following: [5]
  • The motives for investing in the traditional economy : it is that which has taken care of the interests of investors, and economic thinker Keynes believes that it is divided into two values:
    • The first value: It is the marginal capital effectiveness; that is, the expected outcome when executing the investment.
    • The second value: It is the interest rate , i.e. the cost of loans that help implement the investment.
  • Motives for government investment: These are motives associated with social and economic development plans in countries; and they aim to develop policies that contribute to improving the standard of living of citizens by providing all their basic needs, which leads to providing the needs of society.
  • Motives for private investment: These are motives that emerged as a result of the development of private investment opportunities in all areas of business, especially with interest in privatizing projects and enhancing opportunities for private sector investments. These drivers can be identified according to the following:
    • The appropriate return on investment for total profits.
    • Contribute to the establishment of new projects.
    • Providing opportunities to restore equity and capital when selling projects.

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