A corporate investment is investment made by one corporation into another. All corporations try to keep the growth of the business. Some do it only organically, while others also proceeds mergers & acquisitions to grow faster using financial leverage.
Corporate investment is a part of corporate finance. Companies may perform acquisitions by themselves or use investment banking services and various advisors. Sometimes happens that corporations invest in other companies not directly (read: direct investment in stocks) but buy shares of publicly owned firms on stock exchange (for example, when perform hostile takeovers).
Investment in other companies isn’t a simple task, and if another company is acquired too expensive it may destroy value rather than add.
Investment psychology gains momentum in contemporary business world
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