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Different Kinds Of Investments (primary Groups Of Financial Tools) Part 1

If you are interesting in starting your business but you don?t have enough of monetary resources so you will definitely need to find the investor. That is why first of all you should know al about investment kinds.

There is a set of investment kinds. At each kind the there are some advantages and lacks, but the main criterion is profitableness/risk. For each situation the financial tool approaches.

Principal views of investment tools include:

* shares
* bonds (obligations)

* Investment funds

* derivatives

Before you start reading about kinds of investments it is necessary to understand of what is investment and what for to invest in general. The given article is intended for acquainting you with primary groups of financial tools. It is not surprising that each kind of investments has a unique kit of characteristics which determines the given kind of investments approaches you or not. After all for 25 summer bachelors who earns above an average, the brave share market will approach and people on pension choose more conservative and reliable investments, as gold or bonds ?

Shares

At share acquisition, the investor automatically becomes the co-owner of the company which share he has purchased. Thus, you have the right to be present at sessions of co-owners and to bring the word in the further destiny of the company. Naturally, the more your shares block, the more you can say. It is considered that 50 % and one share give a voice of indisputable right. But actually, in the developed financial markets for a casting vote it is enough to have 15 %, since ownership of greater part is really a rarity. But even if you own only one share (ridiculously, but it is also admissible) to you are obliged to send the invitation to session in which also there is a possibility to transfer the right of the voice.

Also, as the co-owner, you have the right to apply for the part of the income of the company, the so called dividends. Company owners receive the part and only in the event that the company has no other clauses of the expense of vital importance, for example, the further development of the company it can be used. Thus, young companies (for example, Google) seldom pay dividends and more mature companies, such as Fords, pay dividends more or less regularly.

It is important to understand that profitableness of this kind of investments consists not in dividends, but in price fluctuations of shares. Differently, shares change in the price, and at the expense of this difference it is possible to be enriched (but also to suffer a loss). Anybody can’t give a guarantee of growth of share price; the maximum that financial analysts can offer is the qualitative fundamental or technical analysis of the given share and the forecast.

It is very reasonable that government, despite this crisis is not leaving to help small businesses. And small business grants can be a true helper today.

But, of course, you should remember that today the fight for small business grants as well as for other types of grants has become more fierce. This is logical – more businesses need them. So before you start your battle for the small business grants, please make sure to visit this blog for more helpful tips about grant industry.

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