What Is The Main Deference between in Investment Activity and Financial Activities? How Finance Manager Will Categorize By Risk Wise?

Investing activities

Examples of Investing activities are

• Purchase or Sale of an asset (assets can be land, building, equipment, marketable securities, etc.)
• Loans made to suppliers or received from customers
• Payments related to mergers and acquisition.

Financing activities

• Dividends paid
• Sale or repurchase of the company's stock
• Net borrowings
• Payment of dividend tax
• Repayment of debt principal, including capital leases

A general rule is More risk should have more return.