Archive | December 3, 2017

Investment Management Firms

When talking about investment management firms, it is very important to understand profit maximization and wealth maximization. According to the objective of profit maximization, the ultimate goal of a business enterprise is to maximize its profits. All the efforts of the organization are to be directed to achieve this goal. The profit maximization objective is justified, as business is conducted for earning profit. When profit earning is the aim of the business, profit maximization should be the obvious objective. Profitability is an indicator of the efficiency with which the firm is managed. The higher the profit, the better the efficiency. For growth and expansion, profit is the main source of finance. To meet unforeseen contingencies reserves are necessary, which is possible only if there is enough profit.

However, the profit maximization objective is objected to on some grounds. The term profit is vague. It may assume different meaning in different contexts. It may be short-term or long-term. The concept of profit maximization generally ignores the time value of money. All profit gained in different time periods are taken together. The risk involved in any given project and the uncertainty of return are not at all considered. Accounting bias influences profit.

On the other hand, according to the objective of wealth maximization the ultimate goal of a business enterprise is to maximize the wealth of the shareholders, which is represented by the market value of the shares of the firm. Wealth is defined as the net present worth of the firm, i.e., the present value of all future returns.

Though the wealth maximization objective seems superior to the profit maximization objective, it is to be noted that the former is based upon the latter. The market price of shares, which is the indicator of the wealth of the firm, is based on the long-term returns of the firm. The returns that accrue to the investor would be a function of the earnings of the company. Thus it can be said that these objectives are not competing.

Diversify Your Investment Portfolio Buy Gold Bars

To buy gold online is one of the best options these days when investing money in something safe is almost impossible. Those who have already invested in the yellow metal know this can be done in more than one way. You can buy gold online in the physical form, as bonds, certificates, stock actions and so on. Many people prefer the physical gold because seeing the precious metal and being able to touch it gives them more confidence. Of course there are many other reasons why the physical metal is preferred to a piece of paper, but these are probably the most important ones for many investors.

Buying gold bars is definitely one of the oldest ways to invest in the precious metal. Before the certificates were invented people used to buy bars, coins and jewelry. These were actually the only ways one could own the precious metal since in the past there was no such thing as the stock market. This is why many investors choose gold bars and feel safer to invest in them than in other tools.

Financial experts advise their clients to try and invest their money in several industries at a time. If something happens with one industry, having a backup option is preferred. Another very wise advice they offer these days is to keep at least 10% of the savings in gold. Sometimes this might actually be the only backup solution possible when other hard assets cannot secure the financial wellbeing. For this reason many do not stop at only 10%.

Why should you choose to diversify your investment portfolio with gold bars? There are many reasons why you should buy gold online, especially gold bars. First of all, gold bars do not lose their value like some coins or jewels that can be scratched when used. Secondly, they can come at different prices according to their weight and the purity of the precious metal used to make them. This means that it is completely up to you how much you want to invest in them. They are also easy to purchase because almost all companies offer customers the possibility to buy gold online under the form of bars. This will obviously come in handy when you have to sell them.

To conclude, diversifying your investment portfolio with precious metal bars is the wise way to go. If you consider the price of the precious metal from the past years you will notice that it is one of the most profitable hard assets that has made millions of people richer than they were already. For this reason many investors changed their perspective and chose to buy gold online to secure what they have and make money when nothing else seems to work.

Four Really Creative Investment Ideas

Here are a few of the most popular and most creative ways to earn money.

IT Stocks Investments
There is not a doubt that Information Technology is making its mark in the investment market. In fact, the Internet stocks are considered as viable ways to stay afloat during the harsh economic times. Among the most popular stock brands to consider placing money on will be online search engines. Google, for example, has company earnings that could potentially be quite fruitful. IT stocks are also assessed as somewhat productive and have less risk. This is probably because of the current demand in the market.

Precious Metals and Stones Investments
It comes to mind that when one is looking for creative investments, they should think about precious metals. Gold and silver have always been thought to be metals that have the least amount of devaluation. In fact, whether the stock market crashes or not, the value of these metals is still considered to be quite high. Diamond jewelry is also sometimes assessed to be part of the investment. Plus, these are those types of investments noted to increase in worth over time. Thus, if the market seems to be doing well, it would be highly likely that it will have a higher value than what it cost before.

Collectible Items
Who said that sports cards and comics would not be worth a penny? Typically, these are those items considered to be creative investments that have a high price because of its rarity. By having a rare book, stamp, or a baseball card that is hard to find might mean that more people will be willing to pay a higher price for it. Good profits are actually noted on these types of investments. However, it is noted collectibles in mint condition will be priced at a higher value than those that have fully depreciated.

Online Businesses
Considering that the Internet is quite useful and very popular today, it would be ideal to have online businesses. Online selling is a very productive business. As a matter of fact, there are thousands of companies that have profited by affiliating their conventional stores with online selling. Typically, most people would now prefer to buy their necessities online because it provides them the convenience traditional stores lack. Another idea for an online business is to offer outsourcing services. Generally, the ease that the Internet offers is what drives people to use it more frequently.

Diversity is often essential on how a person can become successful when it comes to his creative investments. Technically, it means that there should be a mix of different ideas or capital ventures where to put money in.