Respond to this Comment, Agree or disagree with it, and explain why.

1. "Companies invest in debt and equity securities because it's a safety cushion, asset, and investment to the company. This safe cushion will create a liquid investment balance to tide the company over in case of an emergency. Companies can invest in bonds and mortgages, which includes interest. The interest is the equity investment the company can claim on the earnings."

2. "Companies invest in debt and equity securities when they have cash that they are not using for daily operations. One benefit to making these investments is to get rate of return on money that would otherwise sit an account earning nothing. Another reason they may do it is to gain control of another company. Perhaps one of their vendors has some proprietary product or system they want exclusive rights too. Purchasing the majority of stock in the vendor gives them control. Another reason that has been mentioned by others, is just to build a relationship with another company. Purchasing a debt security creates good will with the company issuing the debt."