Decreasing of the Company Indebtedness Through Financial Investment

Abstract

Present period of business brings problems, when many companies achieve profit by the way of indebtedness against external environment, in which company exists. Mainly due to the external relations company has almost regular problems with indebtedness and consequent paying disability. Goal of the paper is to show impact of financial investment to the indebtedness decreasing by the way of securities portfolio. Research database of securities value is used from the results of periodic auctions, according which there is calculated revenue of investment and investment risk, as it is defined by Brealey et. al (2000). Decision to solve the situation through financial investment can help financial managers to make effective solving of the indebtedness that can greatly determine further orientation of the company in the future.