Investment means managing money in economic, cultural, as well as social projects, with the aim of achieving a modern capital entry, with the aim of raising production capacities or modernizing and returning old capital.
Investment can be divided into several types, including:
In terms of means: There are direct and indirect investments.
In terms of its economic motives: government investment, that is, state investment, and there is private investment, which is known as private sector investments, in addition to foreign investment, which is known as foreign investment, which is considered one of the important sources of financing economic development projects.
The best investment methods: the best investment funds
The investment decision is one of the most important and dangerous decisions taken by the bank’s management. They affect the survival, continuity and growth of the bank. As the investment assets of the banks vary, and their terms vary in order to achieve three main objectives, namely, liquidity, income, and the combination of liquidity and income (security), and therefore the investment portfolio in the bank contains a variety of [[legitimacy] Dealing in the stock market: the ruling on dealing in the stock exchange.
1. Direct investments, which are meant for the bank to participate with others in establishing projects from the beginning, participating in the study of its economic roots and promoting its idea, and contributing to its shares, and thus the bank contributes to revitalizing the stock market, by participating in adding new projects and attracting new investors to the market .
2. Investment in government securities, which are bonds offered by the state for subscription for the purpose of financing some projects, instead of borrowing from abroad. This type of bond is guaranteed as it is guaranteed by the state, and the degree of risk in it is low if it is not nearly non-existent. Therefore, we find that the return of these securities is low compared to some other securities.
3. Shares Shares are divided into the following: a. Ordinary shares An ordinary share can be defined as a security that has a nominal value, and a market value that may be completely different from the nominal value. Before others. Owners of ordinary shares enjoy a set of rights represented in obtaining a part of the profits achieved by the company according to conditions determined by the company, such as the condition of achieving profits, and the company taking a decision to distribute profits. They also have the right to elect members of the board of directors and to delegate their representatives to Exercise the right to vote, and they also have the right to inspect and review the company’s records and books.
B. Preferred Shares The preferred stock is a security that has a nominal value and a market value, and its holder is determined to have rights or privileges that exceed the rights and privileges prescribed for the holder of ordinary shares. Ordinary shares on the one hand, and bonds on the other hand, as they are similar to ordinary shares in that they give their owner the right to vote and own part of the company’s assets, and are similar to bonds on the basis that they have a fixed cost and may be of limited duration.
4. Bonds A bond can be defined as: a security that has a nominal value, a market value, a coupon rate and a maturity date, and the nominal value of the bond is the value written and written on the face of the bond, and it is the value that the borrowing facility pays under the bond to the bond owner according to the bond amortization schedule agreed upon or when The bond’s maturity date. Bonds are characterized by the stability of the periodic return. They may be government bonds, which are issued by the state and put up for subscription in order to obtain the necessary funding to pay the budget deficit or finance some projects, such as treasury bills. It may be non-governmental, which is issued by business establishments and is exposed to a relative risk of non-payment to a higher degree than government bonds, and it is also characterized by a higher return than government bonds.