How to Obtain Stocks and Bonds for Your Business
- 1). Determine the amount of funds that available for investing in stocks and bonds. Keep in mind that asset allocation is important and a business should have its money in a mix of cash, stocks and bonds just like an individual investor. Pay attention to revenue and expenses and determine the amount of cash needed on hand to continue business operations.
- 2). Meet with your accountant or in-house accounting department to determine how much of your available investing funds can be tied up in investments such as stocks and bonds. Remember that investments in bonds are not very liquid and valuations change for stock investments. Money invested in both stocks and bonds should be funds that will not be immediately required for business operations.
- 3). Open an online trading account specifically for businesses or corporations. Contact a traditional trading firm if you prefer to utilize a broker for investing. Fund the account with the amount determined available for investing.
- 4). Allow access to the online or traditional trading account to select individuals in your company so that more than one person has the ability to make decisions regarding the investments. Coordinate and communicate with those people on a regular basis to discuss investment strategy.
- 5). Buy stocks and bonds based on your own research as to which ones suit your businesses' investment needs and style. Ask your trader or other financial advisor for guidance on which stocks and bonds match your investing level and desired return on investment.
- 6). Monitor your investments and make changes as needed. Continue to buy, hold and sell shares of stock and purchase additional bonds as funds become available. Keep accurate records regarding all trades and have your accounting department or accountant track and trace all investments made and income earned through investments.
Source...