Gross and net investments - is the process of interaction between the two sides: the investor and the entrepreneur

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Today there are a large number of high-tech concepts, terminology defining investment, but basically they can be seen as the interaction of two parties: the company and the investor.This process implies the possibility of investing capital in the activities of the company for future profits or other economically positive effect.

Company's investments are required in most cases to expand their activities, increasing production scales or spheres of commercial influence (net investment does not affect the amortization fund).

In this process, there are many ways to invest and their implementation companies.This, in turn, gives rise many-sided theorists interpreted the definition of investment research using beautiful phrases and sentences.And so they discourage simply contributor hunt take the first steps towards increasing the capital of a plant with a view to further development for the benefit of the motherland.However, wishing to implement investment projects conceived is not "bother", scoring the head by a course of economic science, since everything is very simple: give money (or other assets necessary to the enterprise) - wait for returns.Anyone who "gave money," is an investor and will benefit certain agreements in due time.And the one who "took the money," - an object of investment.

And in actual fact, the process is quite simple.What could be easier than having capital enter with him into someone's already working the case and, without taking much meaningful participation in the correct disposal of their funds, waiting for profits?

First of all you must understand that investment to classify according to various criteria, depending on the factors of their application (term ownership, source of funds, etc.), which, though bear certain information load areintuitive and do not require too much recourse to the economic literature.For example, according to this division, domestic investments are divided on a regional basis (a process that occurs within the State).They can also be direct, if there are no intermediaries in the investment (banks, credit institutions, financial community).

Besides intuitive classification, they are divided into gross and net investment.The first is considered to be the full amount of the increase of the capital stock of the enterprise, including depreciation costs (repair, purchase of spare parts, fuel, etc.).Net investment - it is a means to enhance its activity and increase the scale of production or spheres of commercial influence, except for amortization expenses.

Thus, any person who owns the capital and which has no desire to give it to the bank, the investor may be a small enterprise, entered into a "share", using the net investment, buying equipment, vehicles, tools, etc.If you wish to participate in a large corporation, you can buy its securities.