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Investing is essential for companies seeking funds and for investors aiming to grow wealth. Investment transactions carry risks for both parties; thus, a well-structured investment agreement is crucial to protect their interests and minimize disputes. This agreement outlines the terms of the investment, specifying the price of shares and payment arrangements, which may include options for installments. It also details the rights and obligations of both parties, ensuring that expectations and entitlements are clearly defined. Overall, an investment agreement serves as a safeguard for both investors and companies involved in the transaction.