Securities Investment
Securities Investment: Investment: the act of acquiring various assets for a large return in the future. Real asset: Asset used directly in production (building, land, machinery, knowledge, etc.) Financial asset: Claims for money or real assets (deposits, bonds, stocks, options, futures, etc.) Three Elements of Investment: 1. Profitability: The purpose of the investment is to use the current economic sacrifices in the future. It's about earning a more significant profit. 2. Risk (safety): Risk that individual investors can bear. Investment targets are selected based on the investment target's level and degree of risk. 3. Liquidity: At a fair price or without loss of price. Ability to quickly and easily monetize holdings. Preferred Stock: Stocks that are given priority over common stocks in the distribution of profits or residual property. Character: 1. Restricted voting rights and limited participation in additional dividends (exchange of bonds) 2. Legal even...