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    Why Invest in Securities?

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    Why do companies invest in securities? What is the cost of an investment in a stock? What is the cost of an investment in a bond? How do the International Financial Reporting Standards affect the reporting of securities in the US?

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    Why companies invest in securities?

    Companies invest in securities to park essential cash in federal bonds or money market mutual funds that may offer higher levels of return. In times of economic downturn and fluctuation in the economy, companies would rather invest in securities than invest capital in normal business activities.

    What is the cost of an investment in a stock?

    Equity cost ...

    Solution Summary

    The solution provides reasons for security investing, as well as the cost of investment stocks and bonds. References are included.