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Tag: Corporations

Investment Company
Business, Investment

Investment Company

Investors are seeking guidance in the wake of the economic downturn. As they examine their portfolios. The rise and fall of investments lead many to wonder: Why do we need an investment company? What do investment companies do? An investment company does two things. It seeks out businesses that are in dire need of funds and then trades the businesses for cash. It is not always clear to investors that "desperate" or "vulnerable" means. But for a business to be called "vulnerable," it must be suffering from substantial losses and be close to liquidation. The companies are not always small or medium-sized businesses. There are dozens of large corporations that have gone under in recent years. Due to the industry's shift to debt financing for projects. What investment company does is to...