Investment can be long-term and short-term. Long-term investment, it when you invest money, and the first profit start to receive only in 3-5 years. In short-term investments, this process borrows about one year. Also all investments can be divided on expensive and small - budgetary. To world measures, expensive investments begin with the sum over 100 000 dollars. In total that less than this sum, it is possible to divide on average and budgetary and small - the budgetary investments.
As to world economy, investment in it plays very large role. If to consider a case of any investment, it is possible to tell that it, almost same as the credit in bank. The main difference consists that at the credit, you stipulate beforehand the exact sum both exact terms, and the creditor, for 100 % is sure that will return the money, plus also percent. In investment all not so. The situation can develop in such a manner that you invest money in the project which in the future will simply burn through. In such cases, you not only don't get profit, but you also will lose an initial body of an investment. Therefore, investment, it much more risky business, rather than credit.
Investments or capital investments in the most general sense are understood as temporary refusal of the economic subject of consumption available for it at the disposal of resources (capital) and use of these resources for increase in the future of the welfare. The expenditure of money on acquisition of the property, being characterized essentially smaller liquidity – the equipment, real estate, financial or other non-turnaround assets appears the simplest example of investments.
It is accepted to distinguish two types of investments: real and financial (portfolio). It should be noted that in case of real investments use (operation) of the corresponding non-turnaround assets for production of some production and the subsequent its realization appears a condition of achievement of the planned purposes, as a rule. Here use of organizational and technical structures of again formed business for profit extraction, for example, belongs during authorized activity created with attraction of investments of the enterprise.
Within the centralized planned system the following standard concept was used: «Capital investments are the financial means spent for construction of new and reconstruction, expansion and modernization of the operating enterprises (production capital investments), on housing, municipal and cultural and community construction (non-productive capital investments)».
In our daily language the word "investment" not always has the same value what is given it in economic discussions where «pure investment», or formation of the capital, that represents a pure gain of the real capital of society (buildings, the equipment, material and production stocks etc.) is called. In an everyday life often speak about "investment" when buy a ground, in circulation securities or any other title of a property.
The given definitions show distinction in definition of essence of investments in planned and market systems. The definition given to capital investments (investments) in a planned economy, narrows area of investment and limits it to investments only in increase and improvement of fixed assets. In the conditions of a management system of distribution of resources the fact of existence of financial and other types of investments wasn't considered by a domestic economic science. Now both terms are applied. The term "capital investment" means that type of investments which goes, generally on reproduction of fixed assets.
In market economy on the essence of an investment combine two parties of investment activity: expenses of resources and results. Investments are carried out for the purpose of receiving result (the income or other result) and are useless if they don't bring such result.
Besides, it is possible to note still the following common, characteristic features of investments: they, as a rule, have long-term character (it belongs to real investments; short-term investments are carried out in the financial sphere with fast-liquid securities); investment activity and made investment decisions have complex impact on all parties of business activity and a social and economic situation in the region.
So, the variety of concepts of the term "investments" in modern domestic and foreign literature substantially is defined by width of the intrinsic parties of this difficult economic category. Therefore for specification of the content of this category it is necessary to consider the main characteristics forming its essence. In this regard it should be noted that investments is:
As to world economy, investment in it plays very large role. If to consider a case of any investment, it is possible to tell that it, almost same as the credit in bank. The main difference consists that at the credit, you stipulate beforehand the exact sum both exact terms, and the creditor, for 100 % is sure that will return the money, plus also percent. In investment all not so. The situation can develop in such a manner that you invest money in the project which in the future will simply burn through. In such cases, you not only don't get profit, but you also will lose an initial body of an investment. Therefore, investment, it much more risky business, rather than credit.
Distinctions in approaches
Investments or capital investments in the most general sense are understood as temporary refusal of the economic subject of consumption available for it at the disposal of resources (capital) and use of these resources for increase in the future of the welfare. The expenditure of money on acquisition of the property, being characterized essentially smaller liquidity – the equipment, real estate, financial or other non-turnaround assets appears the simplest example of investments.
It is accepted to distinguish two types of investments: real and financial (portfolio). It should be noted that in case of real investments use (operation) of the corresponding non-turnaround assets for production of some production and the subsequent its realization appears a condition of achievement of the planned purposes, as a rule. Here use of organizational and technical structures of again formed business for profit extraction, for example, belongs during authorized activity created with attraction of investments of the enterprise.
Within the centralized planned system the following standard concept was used: «Capital investments are the financial means spent for construction of new and reconstruction, expansion and modernization of the operating enterprises (production capital investments), on housing, municipal and cultural and community construction (non-productive capital investments)».
In our daily language the word "investment" not always has the same value what is given it in economic discussions where «pure investment», or formation of the capital, that represents a pure gain of the real capital of society (buildings, the equipment, material and production stocks etc.) is called. In an everyday life often speak about "investment" when buy a ground, in circulation securities or any other title of a property.
The given definitions show distinction in definition of essence of investments in planned and market systems. The definition given to capital investments (investments) in a planned economy, narrows area of investment and limits it to investments only in increase and improvement of fixed assets. In the conditions of a management system of distribution of resources the fact of existence of financial and other types of investments wasn't considered by a domestic economic science. Now both terms are applied. The term "capital investment" means that type of investments which goes, generally on reproduction of fixed assets.
In market economy on the essence of an investment combine two parties of investment activity: expenses of resources and results. Investments are carried out for the purpose of receiving result (the income or other result) and are useless if they don't bring such result.
Besides, it is possible to note still the following common, characteristic features of investments: they, as a rule, have long-term character (it belongs to real investments; short-term investments are carried out in the financial sphere with fast-liquid securities); investment activity and made investment decisions have complex impact on all parties of business activity and a social and economic situation in the region.
So, the variety of concepts of the term "investments" in modern domestic and foreign literature substantially is defined by width of the intrinsic parties of this difficult economic category. Therefore for specification of the content of this category it is necessary to consider the main characteristics forming its essence. In this regard it should be noted that investments is:
- object of economic management;
- the most active form of involvement of the saved-up capital in economic process;
- possibility of use of the saved-up capital in all its alternative forms;
- alternative possibility of capital investments in any objects of economic activity;
- source of generating of effect of business activity;
- object of the market relations;
- object of a property and order;
- object of temporary preference;
- risk factor carrier;
- carrier of a factor of liquidity.
Thus, investments of the enterprise represent capital investments in all its forms in various objects (instruments) of its economic activity for the purpose of receiving profit, and also achievement of other economic or external economic effect which implementation is based on market principles and is connected with factors of time, risk and liquidity.
No comments:
Post a Comment