Identify the Investing Activity for a trading organisation.

Purchase of shares from other companies

The correct answer is Option (3) - Purchase of shares from other companies.

Purchase of shares from other companies is an investing activity of a trading organisation. Money is invested in other company to earn profits. When a trading organization invests in shares of other companies, it is acquiring ownership in those companies for the purpose of earning dividends and capital appreciation.

* Purchase of goods is an operating activity.
* Rent paid is an operating activity.
* Issue of Shares is a financing activity.