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What is financial investment?
Financial investment is also called "securities investment". An investment activity in which an economic entity purchases financial assets such as stocks and bonds with funds in order to obtain expected returns or rights and interests. Financial investment is not only a field, but also a way, which is the product of developed market economy and credit. The earliest securities investment can be traced back to Europe in the15th century. Since 1980s, securities investment has become the most basic investment mode in western developed market economy countries. When an economic entity invests in the preservation and expansion of physical assets by issuing stocks, bonds and other securities, securities buyers become financial investors. Financial assets are holders' rights and interests and creditor's rights certificates to sellers. Financial investors get returns by holding securities and sharing the profits and equity of securities sales institutions. Because financial assets make it possible to separate the ownership and management of property, it helps to concentrate idle funds in society and turn them into investment funds for substantive production. It is an important channel for mobilizing and redistributing funds, so it is the basic form of investment in developed countries.