When an enterprise pays considerable sums of money for a short period of time into financial instruments, which can be securities, investment projects, insurance services, precious metals, etc., we are dealing with short-term financial investments.
What concerns short-term financial investments?
So, to this type of financial contributions it is customary to include the following:
- all kinds of investment companies (for example, MMM);
- bonds of other enterprises;
- investing money in real estate;
- valuable government securities (for example, in the Russian Federation these are gold certificates, privatization vouchers, domestic currency loan bonds);
- equity contributions;
- stock market;
- lending to both individuals and legal entities;
- investment in development of investment character.
The essence of short-term investments
The enterprise, investing money in any financial instruments that were mentioned earlier, already a year later receives a high income from such investment . Moreover, this profit is from 65 to 100% of the initial invested financial amount.
It is important to mention that unlike long-term, short-term financial investment, as expected, can incur large monetary losses. This is explained by the fact that the higher the profit, the greater the risk that this investment will not yield the fruits of the year.
It will not be superfluous to point out that today the Forex market, binary options, various financial pyramids, as well as high-tech projects (online projects that mainly work with e-currency) are the most popular as short-term investments.
In addition, most often such financial investments are carried out not only in materials, but also in raw materials. True, the greatest risk is the investment of money in securities.