What are the Different Types of Financial Investments?

Financial investment is also called "securities investment". Investment activities in which economic entities use funds to purchase financial assets such as stocks and bonds in order to obtain expected returns or equity. Financial investment is both a field and a way, a product of a developed market economy and credit. The earliest securities investments date back to the 15th century in Europe. Since the 1980s, securities investment has become the most basic investment method in western developed market economy countries. When an economic entity invests in the maintenance and expansion of real assets by issuing stocks, bonds and other securities financing methods, the purchaser of securities becomes a financial investor. Financial assets are evidence of their holders' equity and claims on their sellers. Financial investors obtain returns by holding securities and sharing the profits and equity of the securities sales organization. As financial assets make it possible to separate property ownership from management rights, it helps to concentrate idle funds in society and convert them into investment funds for real production. It is an important channel for mobilizing and redistributing funds, and is therefore the basic investment of developed countries. form. ^[1]

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Financial investment can be divided into several types in terms of its methods, methods, time, and income.

Major domestic and international financial investment

Financial investment as a way to expand

In recent years, the continuous development of the market economy has promoted the continuous increase of financial investment behavior, and the financial investment system is also in the process of continuous development and improvement. As an economic behavior, financial investment is formed on the basis of the continuous development of society and economy, and it has gradually become an investment behavior that people pay attention to and enter the international market.

With the improvement of the income level of Chinese residents and the deepening of reforms, the forms of personal financial investment by residents have diversified. Financial investment is not only an investment activity, but also has dual consumerism. On the one hand, individual residents' purchase of financial investment services has the characteristics of purchasing or consuming general service products; on the other hand, it is also a way to meet the multiple needs of investors Or desire consumption activities. Therefore, expanding financial investment channels and even accelerating the development of the financial industry is not only a need to promote economic development, but also to improve the level of consumption and quality of life of residents.