trade investment

the acquisition of STOCKS and SHARES in one FIRM by another firm. Trade investments may be undertaken for a variety of reasons including the profitable investment of surplus cash; the protection or advancement of an existing contractual trade relationship by a more direct involvement (for example, a supplier might buy a stake in a customer firm); the provision of a launching pad for a possible future TAKEOVER or merger. Where the trade investment involves the acquisition of a large but not controlling proportion of a company's shares then that company becomes an ASSOCIATED COMPANY.

See QUOTED INVESTMENTS, UNQUOTED INVESTMENTS.

单词	trade investment
释义	trade investment trade investment the acquisition of STOCKS and SHARES in one FIRM by another firm. Trade investments may be undertaken for a variety of reasons including the profitable investment of surplus cash; the protection or advancement of an existing contractual trade relationship by a more direct involvement (for example, a supplier might buy a stake in a customer firm); the provision of a launching pad for a possible future TAKEOVER or merger. Where the trade investment involves the acquisition of a large but not controlling proportion of a company's shares then that company becomes an ASSOCIATED COMPANY. See QUOTED INVESTMENTS, UNQUOTED INVESTMENTS.
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