What is the investment?Today, the question almost no one doubts.Time of domination of market relations in the modern economy dictates the rules of survival.Perhaps that is why the possibility of profitable investment today are concerned not only the financial power brokers, but also ordinary people who care about the preservation and augmentation of their savings.
The term "investment" originates from the Latin «invest», which means "to invest.""Encyclopedia of the entrepreneur" edited S.M.Sinelnikova, published in 1994, gives the answer to the question "What is the investment": "Capital, placed in a legally independent companies for the long term or to obtain additional income or to acquire... as well as the impact of investments in securities. "Of course, the list of objects of monetary investment is not limited to items listed in the quote.Invests in special bank deposits, loans, machinery, equipment and technology, property or the rights to it, as well as in intellectual values and licenses.
As presented in investing activities and the vastness of the field is different in different directions, and then classify these cash investment accounts according to several criteria.
So, depending on the planned length of time working capital, investments can be either short-term or long-term.Ownership depositors classifies investments in the public, private, foreign or joint.The nature of participation in the project determines the direction, that is, investments may be direct (cash invested directly by project participants) and indirect (attraction of free funds through the sale and production of a variety of securities, such as shares and similar instruments).
As for the types of investment in the practice of financial and economic and industrial activities are the following major groups:
- real investments (that the funds invested in long-term projects, implying the acquisition of production facilities and the like property);
- financial (mean investing in these kinds of financial assets such as securities, bonds and similar instruments);
- intangible assets (that investments in the purchase of intangible rights such as licenses, patents and other similar securities).
Returning to the main issue of the article that such an investment, let's take a closer look, each of the above types of investment.
Real investment - the most easy to understand the way of capital investment, which involves the purchase of real estate, the direction of cash flows for the purchase of goods or the cost of the purchase of services, of course, with a view to profit.Aspiring entrepreneurs opt for its investment activities this way, it should be remembered that this sector is enormous and subject to many risks.Nevertheless, it remains one of the most profitable and the most commonly used species.
Answering the question "What is the investment in financial assets", we mean a set of operations and actions performed with securities.The funds invested in promissory notes, stocks, bonds, bank certificates, options, securities, state, futures, just are not that other, as a financial investment.The abundance of types of securities and the difficulty of working with them is not always attractive to potential investors.Which, of course, a mistake, because today the infusion of funds into securities or, as they are called, stock paper - is the most successful and profitable kind of business.
applied to intangible assets, investment activity - it is investing in facilities that are not material or real values and are not for sale.These can be investments in research and development, licenses and patents, trademarks, training, advertising, software and other similar intellectual property.
