Week 7discussion question

Answer the two question Identify the key benefits of a company investing and trading securities. Provide a rationale for your response. List two (2) reasons investment diversification is important. Explain your rationale. Reply to this post The key reason I think a company benefit from investing and trading securities because, instead of having the money sit in a savings account collected little interest, they can invest it into something that is more rewarding until they are able to purchase whatever they were holding the cash for. That way amount of money can grow and they can do other things with what was collected in interest. Two reason investing is important is for one, good things can come to an end and when it does you can loose everything. Second thing is when you invest if you do have any kind of loss it won’t be one that would be notice because you would have other investments going on at that time you can come up with a plan to hold you until you fix the loss of the last situation. Everyone comes across a hard time so whatever decision you make has to be a good one that would benefit you in the future. Reducing risk are always is important so coming up with a plan to reduce certain things that can place a dent in your income.