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Direct investing and indirect investing are two different approaches to participating in the financial markets. Here's an explanation of the key differences between the two:

Direct Investing:

Ownership: In direct investing, individuals directly purchase and own financial assets, such as stocks, bonds, real estate properties, or private equity investments.

Control: Direct investors have direct control over their investment decisions. They can choose specific assets, manage their portfolios, and make adjustments as they see fit.

Costs: Direct investing may involve lower fees and expenses, as there are no intermediaries involved. However, there might be transaction costs, brokerage fees, or other charges associated with buying and selling assets.

Risk and Returns: Direct investors bear the full risk and potential returns of their investments. The performance of their portfolio depends on the performance of the individual assets they own.

Flexibility: Direct investors have the flexibility to tailor their portfolios to their specific investment goals, risk tolerance, and preferences.

Indirect Investing:

Ownership: In indirect investing, individuals invest in financial assets through intermediaries, such as mutual funds, exchange-traded funds (ETFs), or managed accounts. They do not directly own the underlying assets but instead hold shares or units of the investment vehicle.

Control: Indirect investors have limited control over the investment decisions made by the fund or account manager. The investment decisions are made by professionals managing the pooled money.

Costs: Indirect investing may involve higher expenses than direct investing because of the fees charged by the intermediaries for managing the investment vehicle.

Risk and Returns: Indirect investors share the risks and returns of the underlying assets held by the investment vehicle. The performance of the investment depends on the overall performance of the pooled assets.

Diversification: Indirect investing often provides built-in diversification, as the investment vehicle typically holds a diversified portfolio of various assets.

Simplicity: Indirect investing can be simpler and more convenient for those who prefer a hands-off approach to investing, as professionals manage the portfolio.

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9mo ago
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14y ago

direct-straight to u
indirect-not straight to u

ANSWER #2

In terms of religion and spirituality, if one takes Bible classes, catechism, Sunday school or participates in any such teaching/learning situation one is being directly influenced by the knowledge of those more well versed in the tenets of one's faith. If one should encounter those same people outside the instructive situation, putting their words into action by the way they treat you or others, this may be considered a less direct form of instruction in that they may be seen to be teaching by example, from their own goodness rather than from a text book. Another way of being indirectly influenced may occur when one leaves the classroom situation and instinctively attends to the needs of those less fortunate than oneself; the gratitude of those you have helped may be a reward for your efforts and indirectly influence and inspire you to pay more attention to your spiritual mentors and make the world a better place for your presence.

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Wiki User

14y ago

Indirect investing refers to a way of investing in real state without actually investing in the property. Indirect investment can be done in many ways, including securities, funds, or private equity. Most investors interested in indirect investment would do so through a company or advisor who has experience in this type of investing.

Direct investment refers to an investment which is sufficiently large to affect a company's subsequent decisions This is sometimes a majority ownership, but sometimes it's just a significant minority ownerships.

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Wiki User

9y ago

The only difference is between the making of "Cash flow from operating activities" in indirect method, net income amount from income statement is adjusted for not-cash items while in direct method there is items like receipts and payment from operating activities. Remaining two activities remains the same for both methods.

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9y ago

The only difference is between the making of "Cash flow from operating activities" in indirect method, net income amount from income statement is adjusted for not-cash items while in direct method there is items like receipts and payment from operating activities. Remaining two activities remains the same for both methods.

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Wiki User

14y ago

The difference between direct and indirect finance is whether or not a middle man is used in the transaction between a borrower and lender.

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