22 November 2007
What do you mean by trade and non-trade investment ? Investments by a firm in shares of other companies is a trade investment or not ? Explain with example.
22 November 2007
If the investment is a requirement to run the business , then it is Trade Investment. Otherwise, it is non trade investment.
eg., Deposit to be made with the Governme nt to take part in the Tender Auction. It is Trade Investment because the relevant industry requires it.
Investment in shares of another company does not seem to be a requisite for any industry which is not an investment company. So, in this case, it is non trade investment.
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