Whenever there is availability of free funds those could be invested in capitals of other organizations: investments in authorized capital of an organization aimed at profit gain. Financial investments can be implemented with the aim of formation of statutory (authorized) or debt capital. Formation of statutory capital is implemented by open-type joint stock companies (OJSC), closed-type joint stock companies (CJSC) and limited liability companies (LLC). Purchase of stocks, investment certificates, depositing – all these refer to participation of accumulation of statutory capital along with confirmation for shares in that capital which guarantees: receipt of revenue in the shape of dividends, participation in enterprise administering or on a part of assets (in case of closing down). Purchase of loan securities, hypothecs, deposit certificates, circulating notes allow to participate in creation of business capital and gain guaranteed interest income which is limited to the par value of securities.

On our site you can also find:

Ratings of banks: Investments in circulating notes
and
Ratings of banks: Investments in loan securities.