Top ten business investments

Everybody knows that people investment in certain things so that they can see a return on their money; basically they are trying to save money and make money for some point in the future. But what many of you may not realize is that businesses also invest their money in things for the same reasons. But the difference between individuals and businesses is what the businesses invest in, sure they invest in stocks and bonds, but what you might not know is that the way they go about investing their money is quite different from how regular people invest their money.

Here is a look at the top ten business investments.

Number one:
OTC or over the counter derivatives - these types of derivatives are contracts that are traded and privately negotiated between two parties directly, which means that they are not done through an exchange or an intermediary. The types of products that you will see in this type of derivatives are swaps, forward rate agreements and exotic options.

Number two:
Exchange traded derivatives - these types of derivatives are products that are traded through specialized Derivatives exchanges or other exchanges. These exchanges act as an intermediary to all related transactions and takes initial margin from both sides of the trade to act as a guarantee.

Number three:
Real estate is a great investment because this type of investment is a tangible investment and it can include land or anything that is permanently attached to your property. Real estate is considered a smart investment and can actually make you a lot of money over time. Many people invest in real estate as a form of rental properties, empty pieces of land that they can later sell to developers, commercial buildings that they lease out, etc.

Number four:
Stocks are probably the most popular type of investment for business. This type of investment usually yields a bigger return because there is a higher risk with investing in stocks. With stocks you are basically taking partial ownership of a company, how big of a part of the ownership you have depends on how many shares you own. While this is a high risk investment, some are higher than others; it is a good investment because of how big of a return you can get on your income.

Number five:
Another great investment opportunity for businesses is bonds. These types of investments are basically promissory notes form the government or a private company and with the bonds there is little risk that you are going to lose your money. Basically how bonds work is that you are loaning a set amount of money to a company or the government and they agree to pay you back that amount of money plus interest on a certain date in the future.

Number six:
Money market funds are another great way that businesses can invest their money. This type of investment is great for a short term investment strategy. How you earn money with this kind of an investment is that you are considered an independent shareholder so you earn money from the investments that you make into the money market funds.

Number seven:
Another investment that is a popular choice among business is investing in equipment. This style of investing is similar to investing in real estate because it is a real asset investment. But when the company invests in equipment they are investing money back into the business, which is still going to get them a return on their investment.

Number eight:
Brokered Certificates of Deposit is another popular option. This type of investment is similar to a savings account but with CDs what you are doing is depositing money into an account for a set amount of time. The longer you leave your money in the account the more of a return you are going to see on your money. But one of the best things about CDs is that even if you do take your money out early you are not going to be charged any penalties or fees for withdrawing your money.

Number nine:
Another popular choice among businesses for an investment is investing in intangible assets. Basically what this means is investing in something other than a real asset, like real estate or equipment, this type of investment falls under the economics category. A great example of this type of an investment would be to invest in your employees, such as training them.

Number ten:
The last type of investment that is popular for businesses usually only applies to larger companies, but it can be done with smaller companies as well. But a great choice for investing is to invest in other business, preferably businesses that will work in harmony with yours. Usually what happens with the larger businesses is they buy the businesses and then invest in the tangible and intangible assets. In fact one of the best intangible assets you can get when you invest in another company or buy another company is their goodwill.