Corporate Investment Programs free essay sample

A look at various factors taken into account before companies decide which corporate investment program to follow. Corporate investing programs allow firms to maximize their profits by utilizing excess cash reserves and strategically investing in vehicles with potential for high returns while incurring the lowest possible risk. This paper discusses such programs, as well as the concept of beta, which is a method for calculating the risk of an investment and how beta can be calculated. The most prevalent form of corporate investing is when larger companies invest in smaller companies with huge potential. Passive investment funds also exist, as an alternative or complimentary investment option. Corporate investing programs may be loosely organized programs affiliated with the existing companies business developments or may be self-contained entities with a strategic charter and mission to make investments congruent with the parents company strategic mission. Stuart Read, vice president of marketing at AvantGo states with cash in the bank, big companies are looking for ways to leverage that asset, and if there is a good investment, theyll take it. We will write a custom essay sample on Corporate Investment Programs or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Firms encounter different implications when investing than individuals, firms face a different set of rules and regulations to in which they must abide, firms have differing tax consequences, they also face a different set of risks.