investment diversification

Business & Finance
Tutor: None Selected Time limit: 1 Day

Identify the key benefits of a company investing and trading securities List two (2) reasons investment diversification is important. Explain your rationale.

Dec 11th, 2014

Key benefits of a company investing and trading securities

a) Less Complicated as compared with direct investment
b) Lesser investment Required
c) Greater Liquidity
d) Better Investment portfolio management (More diversified investment)
e) Seperation of Ownership from Possession
f) easier transferable

(2) reasons investment diversification is important

Every investor/entrepreneur wants to maximize hsi/her profit and want to minimize risk which is not possible so while investing in securities there are lesser risk involved as compared with direct investment.
Secondly; securities investment allows the investor to manage the portfolio more effectively they can invest in different kind of niches and can gradually take adjustment to gain maximum out it.


Dec 11th, 2014

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Dec 11th, 2014
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Dec 11th, 2014
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