Internet investment has emerged as a kind of blessing for many investors. Its blessings are not only for the investors but also for the borrowers. It saves time by enhancing the speed of the transaction. It has increased the market for lending and borrowing. Investors have access to a wide range of investments available around the globe and borrowers have the opportunity to attract the lenders and get finance from all over the world. With the help of internet investment, investors can also make investment in foreign company’s shares n debentures. Investors now don’t need to carry their money or checks to the investment agencies or banks.
This provides convenience for the seller of the funds to allocate its funds anywhere in the world without wasting time and extra cost associated with the allocation. Internet investment makes it easy for the investors to compare the interest rates of different foreign company’s investments with their domestic rates in order to be able to choose the best rate for the investment. In this way, it creates a competition among the buyer of funds throughout the world and leads to the advancement of global competition for funds. Despite choosing the best rates for investments, investor has to take into account the riskiness of the investment.
The riskiness of an investment lies in the volatility of an investment and the probability of the insolvency. With the increase of foreign investments, there has been an increase in insolvency too. Individual investors don’t have the capability to make investments with proper analysis and forecasting so they may suffer losses due to investment in inefficient funds. Investors should consider the risk of insolvency and therefore are required to take insolvency services. The foreign company’s credit ratings can be considered to see the volatility of its investments. Moreover the insolvency services can be used which will help the investor to investigate the volatility of the investment and the bankruptcy affairs.
There are investors who have to bear heavy losses on the internet due to frauds. The chances of fraud are there when investing online through a broker. Education of the investors investing online is necessary to save them from the potential loss. Online broker’s license should be verified. Thus it can be concluded that online investment can be popular if used with precautions. Internet investment has become a focus for both investors and the borrowers these days and due to the popularity of the internet it is supposed to succeed in future too.
International Corporate Advisors Offshore Group , internet investments is an executive level Financial Services and Management consulting group of Specialist Advisors. foreign company’s