1. Make effective use of cash. In the course of an enterprise's operation, the speed of receiving and spending monetary funds is not balanced, which will inevitably cause sometimes a part of the monetary funds to be temporarily idle during the cycle of turnover, and sometimes there will be a shortage of monetary funds. Cash is an asset that does not generate profits. When the amount of cash flow exceeds the amount of cash outflow, the funds are idle, which is undoubtedly a loss for the enterprise that pursues profit maximization as its main goal. On the contrary, when the amount of cash outflow exceeds the amount of cash outflow, the enterprise may suffer losses due to the shortage of funds. In order to balance the speed of income and expenditure of enterprise funds, the enterprise invests in securities, which can meet the needs of the above two situations at the same time. One is to use marketable securities as a substitute for cash, and replace a large amount of cash balance by holding marketable securities. When the demand for cash exceeds the supply and bank loans cannot meet the demand for funds, some marketable securities can be sold to make up the cash balance. In addition, through securities investment, you can also obtain income and improve the efficiency of capital use.
