What is it in finance?
In investing is a band that is a method in which an investor provides a company or company investing several small, constantly paid payments, usually in exchange for the company's shares. This investment method is in contrast to the more common way of providing one large investment payment called the investment method of a flat -rate amount. Investing in drip feed is usually considered to be a lower risk than investing in a lump sum, because in the early stages of the project does not require a commitment to large amounts of cash. Investments in dripping are used in the public stock market and in risk capital stores. Types of investment methods of drip feed include averaging dollars and value average. Since it is by its very nature a stable investment method, feeding drops is a preferred way to invest when the period on the stock market experiences the pre -premium. Investment in dripping is also a popular investment opportunity for investors with a permanent income flow to invest,But too little in advance to invest in a flat -rate sum. Investors receiving structured settlements can start investing earlier by contributing small investment contributions as soon as the money is available for investment.
Firms looking for investors can benefit from receiving investment capital drops because it provides a reliable source of permanent capital that can be used to cover small losses or to expand the company with small steps. Investments in dripping are usually used to grow small companies with growth potential. Small, growing companies often work with several excess cash and are more influenced by small, incremental investments. This type of investment can help grow small progress, but usually does not offer rapid growth or excess flexibility of cash provided by leading capital investment.
The YEE is used in the stock market investment in drip feed, the investor buys shares in the company and provides investments in small transactions. Although this method of investment threatens less initial money, it usually increases the average price paid for stocks, called the average price, because the stock price usually rises for any subsequent investment. The average price is invented by distributing the total price paid for all shares by the total number of purchased or sold events for a specified period of time.