Can an LLC* aside from its main business, invest its cash into the stock market or any other equity market?

* or any other business structure

It depends on your Memorandum and Articles of Association or Constitution, depending on the structure of your organisation. If it allows investments in the stock market, then fine. If it prohibits them, and you go ahead, the shareholders can come after you if losses were made cos you carried out an ultra vires act. Most charities prohibit investing in the stock market cos there's a chance they can lose all their hard-earned donations. If they have spare funds, they usually invest in time deposits or bonds or other instruments which are at least capital guaranteed.

Sure. The things you need to check are:

1) Did you contractually agree in your LLC agreement not to invest your spare cash in certain things?

2) If more than a certain % of your total assets are invested in companies in which you do not have majority control, then you potentially become an investment company that needs to register under the investment company act.

search using www.yahoo.com/search!

Tags

　　Capital Investment 　　Business Investment 　　Business financing 　　Business Invest 　　Business Debt 　　Bond Investment 　　Angel Funds 　　Alternative Investment

Related information

How much capital do I need to raise to start a business or invest in business?

...

Do u want to start a business or invest in China?

Don't come on here to advertise. I flag everyone who does, including you.

...

What 's a good business to invest with ?

Depends on several things. How much are you willing to spend? How much time are you willing to invest? Are you going to be passive or active? Are you going to live there? Are you going to manag...

What is a good small business to invest in?

If there isn't a skateboard shop in your town, go for that. My friend opened one up and profited greatly from it. Some of the companys you might look into to buying from are Element, Flip, Ind...

I need a business to invest in - i have money and experience but want to take the back seat?

Try the venture capital company called Hotbed - based in Milton Keynes. They let you buy into start up companies (rather than putting money into a fund which makes investment decisions for you)....

Need a business to invest in - iv got 拢25,000, good idea then contct me?

Start a Pension Scheme (SIPP). Invest in Index Tracker funds . Each year you can put in an amount equal to your annual earnings and get full Tax Rebate. So if you are earning 拢25k this year, yo...

Any good small business invest in service oriented work pls?

There is a magazine called "Small Business Opportunities" in it they basically just have tons of ads. There are a lot of franchises available for all aspects from food to automobiles. It ...

Is it a good idea to join a company that promises to assist you to find government money for business invest?

NO it is not. First, government does not give out grants to support a for-profit venture. It is hard to find grants for individuals, harder still to find one that would support a for-profit bus...