Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Why might a company want to invest in a company rather than buy it outright? Wouldn't they have more say if they bought the company?
Expert Solution
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Step 1
The company want to invest in another company because it believes in maximizing its return over the period of time and it will also help the company to focus upon its own operation and also diversify to certain extent and reduce the operations risk.
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