Financial investments and their features

click fraud protection

productive activities of organizations that are not investors, has a functional orientation, defining it as a priority form of the actual deposit.The choice of this option is directly linked with the need for effective use of appropriate resources, emerging for the chosen projects.

Financial investments - is carried out by economic activities for the acquisition of securities, corporate rights or other monetary instruments.Investing in these surplus funds may provide for different purposes.The main ones are: the transformation of savings into marketable property documents to obtain a possible future income, as well as control over the issuing institution.Furthermore, financial investments are a form of free use of the company's capital.It has some features:

- allows you to make external investments both within the country and abroad;

- enables enterprises to realize the strategic goals of development, thus saving their own funds;

- requires a minimum amount of time to take the necessary administrative actions (as compared with the actual project);

- takes place in the later stages of the organization after her needs will be met;

- financial investments - an independent kind of economic activity;

- allows you to invest in speculative instruments with no risk and implement policies as a strong conservative investor;

- in need of expediting the adoption of various decisions in the course of financial transactions.

To solve the problems of evaluation, formation and implementation sponsornoy policies need to take into account the classification characteristics of deposits.The forms of financial investments are divided into two main groups.

By type of property:

- state financial investments represent investments which are carried out by the authorities and management of borrowed funds and extra-budgetary funds, as well as enterprises due to their own capital;

- private contributions committed by non-governmental organizations, citizens, companies and associations, economic associations and other legal entities acting on the basis of collective property;

- foreign financial investments are carried out by legal entities in other countries and other states;

- overall investments are citizens of a country, of which they are residents or not.

By means of participation in the investment:

- direct investments - is the operation of economic activities, which include investment in the statutory fund of the legal entity (corporate funds are exchanged for the right);

- portfolio investments involve the purchase of securities and other financial assets in the equity markets.