Long-term investment belongs to the subject of "long-term equity investment" because it is an asset class. Long-term investment refers to the investment that does not meet the short-term investment conditions, that is, the investment that is not prepared to be converted into cash within a business cycle of one year or more.
Long-term investment belongs to the subject of "long-term equity investment" because it is an asset class. Long-term investment refers to the investment that does not meet the short-term investment conditions, that is, the investment that is not prepared to be converted into cash within a business cycle of one year or more. According to its nature, long-term investment can be divided into long-term stock investment, long-term bond investment and other long-term investments.
1, long-term stock investment:
Refers to the stocks issued by other enterprises purchased and held by enterprises for a long time. Different from short-term stock investment, the stock purchased by an enterprise as a long-term stock investment is not for short-term sale, not for obtaining the investment income of the difference between the purchase price and the purchase price, but for obtaining dividend income or controlling the invested unit for a long time, so that the invested unit can serve the overall business objectives of the enterprise as an independent economic entity.
2. Long-term bond investment:
It is a bond investment, and the investment period is more than one year. The purpose of enterprise's long-term bond investment is mainly to obtain stable income. Long-term creditor's rights investment refers to the creditor's rights investment such as bonds purchased by enterprises that cannot be realized or are not ready to be realized for more than 1 year (excluding 1 year). Long-term bond investment means that an enterprise invests in other units by purchasing long-term bonds.
Features:
1. The main body of investment is the enterprise:
Enterprise investment is different from that of individuals or professional investment institutions. Enterprise investment is direct investment, that is, cash is directly invested in productive assets, and then it is used to carry out business activities and obtain cash. Individuals or accompanying professional investment institutions invest cash in enterprises, and then enterprises reinvest cash in operating assets, which belongs to indirect investment.
Direct investment investors (enterprises) continue to control physical assets after investment, so they can directly control the return on investment; Investors who invest indirectly (creditors and shareholders of Chun Qing enterprises) do not directly control the operating assets after investing, so they can only indirectly control the return on investment through contracts or changing agents.
2. The object of investment is operating assets:
Operating assets include buildings, factories, machinery and equipment, inventory, etc. Investment in operating assets is different from investment in financial assets. The investment objects of financial assets are mainly stocks, bonds and various derivative financial instruments. , also called securities investment. The analysis methods of operating assets and securities investment are different. The core of the former is the principle of net present value, and the core of the latter is the principle of portfolio.
The operation that may fail in investing in stocks and the basic pressure of long-term investment are analyzed in detail. We need to further discuss the speed and method of long-term investment.
The investment objects of operating assets include fixed assets and current assets. The time from cash outflow to cash inflow of fixed assets investment exceeds 1 year, which belongs to long-term investment; The time from cash outflow to cash inflow of current assets investment does not exceed 1 year, which belongs to short-term investment. The principles, procedures and methods of long-term investment and short-term investment are quite different. So we should discuss it separately.
3. The purpose of investment is to obtain the material resources needed for business activities:
The purpose of long-term investment is to obtain fixed assets and other labor materials needed for production and operation, so as to make use of these resources to earn operating profits. The purpose of investment is not to obtain the resale income of fixed assets, but to use these fixed assets. Some enterprises will also invest in other companies, the main purpose is to control their own operations and assets, in order to increase the value of their own enterprises, rather than mainly get dividends.
The company's equity investment in subsidiaries belongs to operating investment, and its purpose is to control the operation, not to expect the proceeds from resale. The consolidated statement will offset these equity investments and show the true colors of their business investments. The evaluation method of subsidiary investment is the same as that of direct investment in operating assets.