Case Study Example | Topics and Well Written Essays - 1500 words - 2

Case Study Example It is more risky and mosly concerned with starting companies. This is a speculative form of investment which helps firms and individual to gain some interest on money which could otherwise be idle. Market bonds also help firms to diversify investment in the capital market. These bonds help companies to raise finances from the public and help the government to regulate inflation. Individuals buy share from the stock market to become shareholders through investment, for example n pension and insurance schemes. The investor should always know that the value of shares can increase or fall. Stocks and shares however still provide opportunities for personal investment. Stock market is a way by which firms can raise funds. Through share, ownership of the company is exchanged with money from investors. This is a strategy which can be used by a company to regain its competitive edge in the market. Company restructuring may involve management restructuring, name restructuring and functional restructuring. Proper restructuring is a good competition strategy in a highly competitive or oligopolistic market. These are growth strategies which most firms use to reduce competition and gain bigger market share. Merger is when one firm enters in to partnership with another so that they can utilize each other’s strength for the benefit of both. Acquisition is when a firm buys another firm out of the market. Risk is a negative occurrence in the course of investment which is known with certain level of probability. Risk affects investment choices and levels in terms of capital. Return is just what is ripped from any form of investment. Net present value is an investment decision rule used by different investors to determine the worth of investment. When net present value is positive, then the investment is worth (Brown. P.G et al,