Different from investing activities are financing operations.
Investment activities do not include the exchange of cash for a company's equity; financing activities occasionally do.
Investing operations do not include the exchange of money for debt, although financing activities occasionally do.
Purchases of tangible assets, investments in securities, and sales of assets or securities are all examples of investing activities. If management is investing in the company's long-term health, negative cash flow from investing activities could not be a bad thing.
How does investing work?
Investments are assets that are bought or invested in to increase wealth and set aside cash from hard-earned income or appreciation. The main purpose of an investment is to create an additional source of income or to generate a profit over a certain amount of time.
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