How to determine the value of physical and financial assets

In this article we will discuss the first and last person responsible for determining the value of physical and financial assets, and how the economy is affected by them, the investment industry:

How does the investment industry contribute to economic growth:

More efficient use of capital promotes economic growth that ultimately benefits society.

The investment industry plays an important role in creating the goods and services that ultimately improve the lives of consumers. It plays an important role in connecting savers with money to invest and connecting entrepreneurs with ideas but without money, so their projects are financed through those funds.

In a clearer sense, the investment industry contributes to the efficient allocation of resources, and without it, savers will have to spend a lot of money to find resources for individuals, companies, governments and applicants who provide suitable investments. Financing will cost a lot of money when looking for financing.

The investment industry plays an important role in providing and processing information about investment opportunities and helping investors collect and analyze data about the economy and information about individuals, companies, and governments.

The investment industry also helps investors determine the value of physical and financial assets.

Players in the investment industry specifically collect investment opportunities to meet the needs of investors. The investment industry also offers a wide range of services and products to facilitate depositors to invest in these investments, the services and products of which are discussed in the structural units of the industry.

The investment industry also provides liquidity. Providing liquidity facilitates the process of buying and selling assets without affecting their prices, such as illiquid real estate and buildings, such as:

If you want to sell your car, even if it is at a reasonable price compared to other cars in your area, the sale may take some time. If you want to sell your car quickly, you may have to sell it for less than the actual, fair or true price of the car.

But other assets such as stocks are much easier in the process of liquidity, since the investor may own a lot of shares and sell them all, and the stock can quickly negatively affect the price of the stock, for example:
If you own 100 shares in a public company, you can sell your shares without affecting the share price itself, but if you own 100000 shares, you may not be able to sell them quickly without affecting the share price, so you can if you want to sell and you can accept a lower price for some or all your shares.

Liquidity is a very important aspect of the financial performance of the market. The highly liquid market allows investors to close positions quickly (before sellers change their minds) and have the confidence of getting a fair price at that moment.
How do investors benefit from having investors?

In a well-functioning investment industry, investors are treated fairly and honestly because they have the confidence to allocate their savings to investment management products and portfolio investments.

How do investors serve investors?

Important features offered by investment makers that serve well and benefit investors are:

Providing a wide range of investment opportunities that meet the needs of investors

Investors can invest in debt and equity securities, as well as in alternative investments.

Investors may not be very good at managing their own money and at the same time they want to preserve the capital, as investors in the form of shareholders or partners step in to manage the money for them.

The types and characteristics of investment tools are discussed where the owner of the money wants to invest

Players in the investment industry can also buy and sell a variety of real estate and financial assets, which can then be pooled to create new assets that match the needs of investors.

Investors have the ability to choose from many investment opportunities for investors, which consists in benefiting from access to a wide range of investment services that can help them make and implement better decisions.

Providing investors with value-added services including planning, management, information and transaction services.

Industry players offer advantages to investors.

They have the ability to handle risks. Risk refers to the impact of uncertain future events on the organization

Or discuss and discuss the results achieved by the organization, return and risk should always be considered when making investment decisions.

The investment segment also provides risk assessment and risk assessment, for example, as a form of insurance contracts and products that can be purchased. Alternatively, an industry professional may offer advice on how best to reduce investment risk.

Requires trust, laws and regulations:

All the advantages offered to the investors by the above-mentioned investors are useless, will not achieve the desired objectives, and will not be sustainable unless trust is established between the investor and the fund holder. This trust must be embodied in the form of a regulation, a law, which is important and necessary for the general operation of the financial system.

Savers must have complete confidence that investors will be treated fairly by those to whom they make loans or investments, those who give them advice, sell them investment products or services, and manage their investments.

In any case, laws and regulations must be enforceable in order to effectively achieve the desired objectives.

Protection of investment industry participants, especially investors.
Promote and maintain integrity, transparency and financial justice.

For example, trading based on non-public information that can influence prices (known as insider trading) is prohibited in most jurisdictions. For example, an analyst profile who learns of the imminent acquisition of a new competitor by the company during a private meeting with the company’s management is prohibited from buying or selling the company or the shares of a competitor until the company officially announces its acquisition of the new one. competitor. Get.

If the analyst trades before this information is made available to all market participants, he has benefited from this inside information and lacks integrity and social justice, in which case the analyst should be prosecuted.

Individuals working in the investment industry should always remember that they act in accordance with a code of conduct (a set of ethical principles) and in a professional manner.

Leave a Reply

Connect with

Keep in touch!
Get updated regularly on our latest offerings!



Sign in

Connect with

Send Message

My favorites