Investment Objectives and Types‍

Ahmed Majed Badeiwi Hamza‍

Prof. Dr. Abd Ali Kazim Al-Fatlawi‍

Investment Objectives:‍

Investment aims to achieve various financial and non-financial benefits that can be summarized as follows:‍

A- Obtaining future cash flows that are considered rewards for the investor in exchange for his waiver of current consumption and investment of available capital, as it is an acceptable and profitable investment opportunity.‍

B- Contributing to national production and thus the growth of this production, which is an expression of the extent to which the state has reached in the field of economic growth. (Ahmed and Khader, 2010: 141)‍

Types of investment:‍

Investment is classified into several types, including local investment and foreign investment (direct and indirect). Local investment is the sum of national investments, which include state and private sector investments, while foreign direct investment deals with physical assets (real) such as machines, equipment and buildings that support investment operations (Hermes, 2006: 76).‍

Therefore, it does not include (and this type of investment is characterized by a time period) financial assets, but rather focuses on long-term physical assets such as investment in hospitality institutions and international airports. As for indirect foreign investment, it is investment in securities, and this type of investment is mostly short-term, depending on the price movement of stocks and bonds in the financial markets, as some investment companies have limited policies, so they work to hold short-term investment portfolios such as papers traded in the money market, although investment in securities faces financial challenges that are considered financial problems that may lead the company to Resorting to external financing (Al-Arishi, 2004: 333).‍