Long term Investment and Sources
What is Long-Term Investment?
Long-term investment refers to financial assets or strategies designed to generate returns over an extended period, typically more than one year. These investments focus on capital appreciation, steady income, and wealth accumulation rather than short-term gains.
Common Sources of Long-Term Investment /Long term Investment and Sources
Here are some key sources of long-term investment:
- Equity Capital – Investing in stocks or shares of companies, providing ownership and potential dividends.
- Preference Shares – A hybrid between equity and debt, offering fixed dividends but limited voting rights.
- Debentures & Bonds – Fixed-income securities issued by corporations or governments, ensuring periodic interest payments.
- Retained Earnings – Companies reinvest their profits into business expansion rather than distributing them as dividends.
- Venture Capital – Funding provided to startups and high-growth businesses in exchange for equity.
- Leasing & Hire Purchase – Businesses acquire assets without upfront payments, spreading costs over time.
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