What Is an Indirect Investment?

Indirect investment refers to investors who use their capital to purchase corporate bonds, financial bonds, or company stocks, and various securities, in order to obtain a certain return on investment. Since their investment forms mainly purchase a variety of securities, It is also called securities investment. Compared with direct investment, investors in indirect investment generally only have the right to obtain certain income on a regular basis, except for stock investment. They do not have the right to interfere with the specific use of this part of the investment by the investee and its management decisions; indirect investment capital It is more flexible in use, can be called or resold at any time, replace other assets, and seek greater returns; it can reduce the risk of investment losses due to changes in the political and economic situation; it can also be used as a central bank to balance the tightness of the banking system and adopt open market operations Buy or sell chips.

Indirect investment

Right!

Indirect investment means

(1) The investor runs a sole proprietorship, directly opens a store, etc., and operates independently; (2)

The difference between indirect investment

Direct investment and indirect investment both belong to the investor's purchase behavior of assets that are expected to bring returns, but there are substantial differences between them: direct investment is the union of fund owners and fund users, and it is asset ownership and asset management The unified movement of rights is generally a production business, which will form physical assets; while indirect investment is the decomposition of fund owners and users of funds, a separation of asset ownership and asset management rights. Investors have no direct influence on corporate assets and their operations. The purpose of ownership and control is to obtain its capital gains or to maintain value.

Indirect investment

In addition to the differences, direct investment and indirect investment have a very close relationship: through indirect investment, you can raise the required capital for direct investment, and monitor and promote the management of direct investment. With the development of the modern economy, the scale of production has expanded rapidly. It is difficult to invest in high-tech and large-scale projects with ordinary individual capital alone. Indirect investment, typically in the form of securities purchases and transactions, makes society a small amount of idleness. The collection of funds has become a long-term, relatively stable and huge amount of investment funds required by the enterprise, solved the contradiction of investment needs, and is an important channel for mobilizing and redistributing funds. Therefore, indirect investment has gradually become the main and basic investment method. It can be said that the development of direct investment must depend on the development of indirect investment; direct investment also has a significant impact on indirect investment. This is mainly because changes in the company's production capacity will affect investors' expectations of the prospects of securities issued by the company, thereby The level of indirect investment fluctuated.