Value Investing and Growth Investing - Case Study Example

Market bonds also help firms to diversify investment in the capital market. These bonds help companies to raise finances from the public and help the government to regulate inflation. Individuals buy shares from the stock market to become shareholders through investment, for example, n pension and insurance schemes. The investor should always know that the value of shares can increase or fall. Stocks and shares however still provide opportunities for personal investment. The stock market is a way by which firms can raise funds. Through share, ownership of the company is exchanged with money from investors.

This is a strategy that can be used by a company to regain its competitive edge in the market. Company restructuring may involve management restructuring, name restructuring and functional restructuring. Proper restructuring is a good competition strategy in a highly competitive or oligopolistic market. These are growth strategies which most firms use to reduce competition and gain a bigger market share. A merger is when one firm enters into a partnership with another so that they can utilize each other’s strengths for the benefit of both. The acquisition is when a firm buys another firm out of the market.

Risk is a negative occurrence in the course of investment that is known with a certain level of probability. Risk affects investment choices and levels in terms of capital. Return is just what is ripped from any form of investment. Net present value is an investment decision rule used by different investors to determine the worth of investment. When the net present value is positive, then the investment is worth it (Brown. P.G et al, 2004). Capital structure is majorly considered by new firms to evaluate investment forms. This affects new firms in terms of investment decisions. This is done by companies or partnerships as a strategy to control or raise more capital for various purposes.