Essence and types of investment

Financial

Direct investments

Indirect

Gross investments

Renovative investments

Clean investments

Derivatives

Autonomous

Internal

External investment

6.Under the implementation period:

Short-term investments

Long-term investments

7.:

Independent investment

Interdependent investments

Mutually exclusive investment

8.In terms of profitability:

High-yield investment

Medium-time investment.

Low income investment.

Individual investment.

Risk-free investment.

Low-Risk

Mediterranean - W.

Highboring investmentsspeculative investments,

10.By liquidity level:

Highly liquid investments.

Middle Local

Low-liquid investments.

Nonquiedia investment

11.

Private investment

Public investment

Mixed investment

12.

Primary investment

Reinvestment

Disinvesting

13.

Domestic

Foreign investment

14.:

15.

Essence and types of investment

Investments in various kinds and forms have been so deeply penetrated into our daily life, which many people, not even related to investment, have a general concept that represents investment. The essence and types of investment in different authors are somewhat different. Let us dwell on this definition of investments:

Investments are an investment of capital in any form (property, money, securities of IT.D.) to the objects of the economy to make profit or solve any social tasks.

Consider the Vice Investment Enterprises in accordance with the classification of the main features given by their classification:

1.According to the objects of investment of capital:

Real (capital-forming)characterize the investment of capital into reproduction of fixed assets, in innovative NMA (innovative investments), in the growth of TMC reserves and other investment facilities related to the implementation of the enterprise's operations or the improvement of the working and life of the staff.

Financialcharacterize capital investment in various investment financial instruments, mainly in securities in order to obtain income.

2.By the nature of participation in investment activities:

Direct investmentsthe direct participation of the investor in the choice of investment facilities and investment is usually direct investments are carried out by direct investment in the authorized funds of other enterprises. Direct investment is mainly prepared by investors with fairly accurate information about the investment facility and well acquainted with the investment mechanism.

Indirectcharacterize investor capital investment indirectly mediated by other persons (financial intermediaries)

3.By reproductive orientation:

Gross investmentscharacterize the total amount of capital invested in the reproduction of OS and NMA in a certain period. In economic theory, the concept of gross investment is associated, as a rule, with capital investment in the real sector of the economy. At the level of the enterprise under this term understand the total amount of invested capital in a particular period.

Renovative investmentscharacterize the amount of capital invested in simple reproduction of fixed assets and amortized NMAs. In quantitative expression, renovation investments are usually equal to the amount of depreciation within a certain period.

Clean investmentscharacterize the amount of capital invested in the expanded reproduction of fixed assets and intangible assets. In economic theory, under this term is understood to be pure capital formation in the real sector of the economy. In quantitative terms, they represent the amount of gross investment, reduced by the amount of depreciation deductions in all types of amortized capital assets of the enterprise.

4.By degree dependence on income:

Derivativesdirect correlated with the dynamics of net income (profits) through the mechanism of its distribution on consumption and savings.

Autonomouscharacterize capital investment initiated by the action of factors not related to the formation and distribution of net income (profits), such as NTP, environmental protection and others.

5.In relation to the enterprise, an investor:

Internalcharacterize the investment of capital in the development of operating assets of the investor enterprise itself.

External investmentrepresenting capital investment in real assets of other enterprises or to financial investment financial instruments issued by other business entities.

6.Under the implementation period:

Short-term investmentscharacterize capital investments for the period up to one year. The basis of the short-term investment of the enterprise is its short-term financial investments.

Long-term investmentscharacterize capital investments for a period of more than one year. The main form of long-term investment enterprises are its capital investments in the reproduction of fixed assets.

7.According to the compatibility of implementation:

Independent investmentcharacterize investment in such objects of investment (investment projects, Fin. Tools), which can be implemented as autonomous (independent investment and non-exclusive objects) in the general investment program (investment portfolio) of the enterprise.

Interdependent investmentscharacterize capital investments in investment objects, the priority of implementation or the subsequent exploitation of which depends on other objects of investment and can be carried out only in the complex with them.

Mutually exclusive investmentit is usually analog nature for the purposes of their implementation, the nature of technology, product range, etc. The main parameters and require an alternative selection.

8.In terms of profitability:

High-yield investmentcharacterize capital investment in investment projects or financial instruments, the expected level of net investment profits, according to which significantly exceeds the average norm of this profits in the investment market.

Medium-time investment. The expected level of net investment profits on innovative projects and financial instruments of investing this group approximately corresponds to the average rate of investment profits established in the investment market.

Low income investment.For this group of investment objects, the expected level of net investment profits is usually significantly lower than the average norm of this profits.

Individual investment.They represent a group of investment objects, the choice and implementation of which the investor does not associate with obtaining investment profits. Such investments are persecuted, as a rule, the chain of obtaining social environmental and other types of an off-economic effect.

9.In terms of investment risk:

Risk-free investment.They characterize investment in such objects of investment, for which there is no real risk of capital loss or expected income and is practically guaranteed to obtain the estimated real amount of pure investment profits.

Low-Riskcharacterize capital investments in objects, the risk of which is significantly lower than the average market.

Mediterranean - W.risk risk at investment objects approximately corresponds to the average market.

Highboring investments. The level of risk on the objects of investing this group usually significantly exceeds the average market. Special place in this group is occupied by the so-called speculative investments, characterized by the investment in the most risky projects or investment tools, which are expected to be the highest level of income.

10.By liquidity level:

Highly liquid investments. These include such objects (tools) of an enterprise investment, which can quickly be converted into a monetary form (up to one month) without tangible losses of their current market value (short-term financial investments).

Middle Localcharacterize a group of enterprise investment objects that can be converted into monetary form without tangible losses of their current and market value on time from one to six months.

Low-liquid investments.These include objects (tools) of an enterprise investment, which can be converted into monetary form without loss of its current market value after a significant period of time (from six months and higher). The main type of such investments are unfinished investment projects, implemented investment projects with outdated technology, non-fog in the stock market shares of individual little-known enterprises.

Nonquiedia investmentthey are characterized by such investments that are independently implemented can not be (they can only be sold in the investment market only as part of a holistic property complex).

11.According to the form of property invested capital:

Private investmentcharacterize the investments of the capital of individuals, as well as legal entities of non-state forms of ownership.

Public investmentcharacterize the investments of capital of state-owned enterprises, as well as funds of the state budget of different levels and state extrabudgetary funds.

Mixed investmentinvestments in both private and public capital in the facilities of the enterprise investment.

12.By the nature of the use of capital in the investment process:

Primary investmentcharacterize the use of capital-generated capital for investment goals at the expense of both own and borrowed financial resources.

Reinvestmentthere are reuse of capital investment purposes under the condition of its pre-release in the process of implementing previously selected investment projects, investment goods or financial investment instruments.

Disinvestingthere are a process of withdrawing previously invested capital from investment turnover without subsequent use on investment purposes (for example, to cover the losses of the enterprise). They can be described as negative investments of the enterprise.

13.On regional sources of capital attracting:

Domesticinvestments characterize the investments of national capital (households, enterprises or state bodies) in various objects of investing by residents of this country.

Foreign investmentcharacterize capital investments with non-residents (legal or individuals) in objects (tools) of investing in this country.

14.On the regional orientation of investment capital:

Internal market investmentcharacterize the investment of capital both residents and non-residents in the territory of this country.

Investment in the international market (international investment)characterize the investments of the capital of residents of the country outside the domestic market.

15.By sectoral orientation investment separated in the context of individual industries and areas of activity in accordance with their classifier. This form of investment classification is related to state regulation of the investment process of the country's warehouses, as well as an assessment of the investment attractiveness of individual industries (areas of activity) in the process of real and financial investment of the enterprise.

Economic essence, value and purpose of investment. Investment process.

Investments are cash, securities, other property, including property rights, other rights that have a monetary assessment invested in the objects of business and (or) other activities in order to profit and (or) achieve a different useful effect.

Economic essence of investments in two aspects of capital movement:

1) Investments are embodied in the established investment entrepreneurial object, forming an investor assets;

2) With the help of investments, the redistribution of resources and funds between those who are in excess, and those who are limited to those who are limited.

The value of the investment is a prerequisite and the basis for:

1) the balanced development of all branches of the economy;

2) expansion of reproduction;

3) acceleration of scientific and technological progress;

4) ensuring the defense capability of the state;

5) the development of financial markets, banking sector;

6) improve the quality of goods and services, ensure their competitiveness;

7) the protection of the natural environment, solving environmental problems;

8) increase the employment of the population, reducing the level of unemployment;

9) international cooperation;

10) development of the social sphere (education, health, culture, etc.).

Investment objectives can be:

1) the company's desire to increase profits;

2) expansion of the company's activities;

3) the desire for the prestige, public influence, power;

4) the solution of social problems (reducing the level of unemployment, an increase in culture);

5) Solving environmental problems, etc.

The investment process is a set of actions to attract the population and legal entities for a certain time to use the production of production main and working capital for receiving entrepreneurial profits. In this process, two sides are always involved: the primary investor and the enterprise is a means of means of funds for its production development. As an economic category, the investment process expresses relations that arise between its participants on the formation and use of investment resources in order to expand and improve production. At the macro level, the investment process is that the population saving, legal entities and part of the income of states "not used for consumption are transformed into production equipment, buildings and structures, technology, materials and energy (investment goods), resulting in expansion of production Scales of society. Production growth increases opportunities for savings that are potential investments; savings, turning into investments, lead to expansion of production, etc.

The investment process is the dynamic process of transformations (shifts of forms)

capital:

Transformation of initial investment resources and values \u200b\u200bin investment costs (specific objects of investment activity - equipment, buildings, etc.) to create material prerequisites for commercial activities;

The transformation of the invested funds into the increase in the capital value in the form of an income or social effect (the accumulation of financial resources in the form of depreciation deductions and part of the profits paying invested in the production of capital).

According to the provisions of the theory of financial intermediation, the main owner of financial resources is the population, and the main consumer - enterprises and organizations. Households are not the only cash provider in the financial market. Sources of investment capital can be their own resources of credit and financial institutions, temporarily free cash of enterprises and organizations, funds of foreign investors, states, etc.

functions of the investment process:

1. Study of the external investment environment: the study of legal conditions of investment activities; Analysis of the current conjuncture of the investment market and the factors determining it; The forecast of the current conjuncture of the investment market in separate segments associated with the activities of the enterprise.

2. Development of strategic areas of investment activity of the enterprise.

3. Development of a strategy for the formation of investment resources of the enterprise: the forecast of the need for investment resources and determining the possibility of their formation at the expense of its own sources.

4. Evaluation of the investment attractiveness of individual investment projects and the selection of the most affective.

5. Current planning and operational management of the implementation of individual investment projects.

6. Organization of monitoring the implementation of investment projects: the formation of a system of observed indicators; determination of the frequency of collecting and analyzing information; Identify the reasons for the rejection of the parameters for the implementation of investment projects from the calculated values.

7. Preparation of decisions on the exit of investment projects and reinvestment of capital in the event of a decrease in the expected efficiency of projects, changes in the financial condition of the enterprise; conjunctures of the investment market and for other reasons.

The development of investment activities is related to the definition of both the ratio of various forms of investment at specific stages and the focus of investment activities, including its sectoral component.

Among the external factors affecting the choice of investment forms, the following two factors are the most significant: inflation and interest rates in the financial market.

Investment objectives can be:

· The desire of the company to increase profits;

· Expansion of the company's activities;

· The desire for the prestige, public influence, power;

· Solution of social problems, such as the preservation and increase in jobs, reducing the level of unemployment, increasing the cultural and educational level of people;

· Solution of environmental problems, etc.

Often, investment objectives are formulated non-specific, fuzzy, in general categories. There is no coordination of individual purposes, plans for their achievement are not coordinated, the possibility of implementation is not substantiated. For these reasons, it is important on the basis of formal purposes to form real specific objectives with the definition of targets. For example, a formal goal is to expand production - should be specified in the form of indicators for which it is possible to determine the degree of achievement of the goal. These indicators may be indicators of the average profit value for a certain period, or the volume of manufactured products (services rendered) in physical and monetary terms, or other indicators characterizing the expansion of production as a result of investment.

Clearly and correctly formed and formulated investment goals simplify the solution of tasks related to the choice of investment directions increase the effectiveness of their achievement. Among the investment directions, investment independent investments may be interdependent, as well as mutually exclusive (alternative) investments.

conclusions

Investments can be defined as long-term capital investment in order to further increase it, i.e. The investment of economic resources in order to create and obtain in the future net profit exceeding the overall initial value of investments. At the same time, capital gains should be sufficient to compensate for the investor to refuse to use available to consumption in the current period, reward it for risk and reimburse the losses from inflation in the upcoming period.

The investment process is a sequence of stages, actions, procedures and operations on investment activities. Specific flow of investment.

It is extremely important to understand that since the investment process, investment is related to long-term investments in economic resources in order to create and gain benefits in the future, the main aspect, the essence of these investments are to convert their own and investor's borrowed funds into assets that, when used, will create a new value. .

Priorities for those or other forms of investment are defined both internal and external factors. The most important of the internal factors is the functional orientation, i.e. The main activity of the investor company. Other internal factors are as follows: the strategic direction of operating activities, the magnitude of the enterprise, the stage of its life cycle. For large enterprises and organizations of the real sector of the economy, as well as in the "maturity" stage, the growth of financial investments is characterized. For enterprises of earlier stages of development, the prevailing form of investment is investments in material and intangible assets.

1. Concept, economic essence and types of investment

The term "investment" comes from the Latin word Invest, which means "to invest." In a wide interpretation, investments can be defined as a long-term investment of capital in order to further increase it, i.e. The investment of economic resources in order to create and receive in the future net profit exceeding the overall primary value of investments (invested capital). At the same time, capital gains should be sufficient to compensate for the investor to refuse to use available to consumption in the current period, reward it for risk and reimburse the losses from inflation in the upcoming period.

Depending on the goals set, the classification of investments can be carried out according to the following basic features.

1) Investment objects distinguish the following three types of investment:

· Real investment (investments in physical assets);

· Financial (portfolio) investments;

· Investments in intangible assets.

Real investments are investments of economic resources into material assets - in fixed assets and on the increase in material production reserves. Real investments acting in the form of investment goods may be movable and immovable property (buildings and structures, machinery and equipment, vehicles, etc.).

Investments in the creation (reproduction) of fixed assets (funds) are carried out in the form of capital investments.

In addition to investments that ensure the creation and reproduction of fixed assets, real investments are the costs aimed at acquiring movable and immovable property, i.e. Related to physical (tangible assets).

Financial (portfolio) investments are investment in various financial assets, mainly investments in equity (shares), debt (bonds) and other securities issued by companies, as well as the state; Investments related to the use of primary and secondary financial instruments.

Investments in intangible assets are investments in training or professional development training, the development of trademarks, the acquisition of property rights arising from copyright; licenses, patents for inventions, certificates for industrial samples, rights to use trademarks, know-how, software products and other intellectual property objects. In addition, the investment in intangible assets should include the acquisition of the rights of the use of land, subsoil, other natural resources, as well as other property rights.

2). According to the forms of property invested capital, private, state, foreign and joint investments distinguish.

Private investments are the investments made by citizens, most often this acquisition of shares, bonds and other securities, as well as investments carried out by enterprises and organizations of the private ownership.

Public investments are carried out by federal, regional and local authorities at the expense of budgets, extrabudgetary funds and borrowed funds, as well as government agencies and enterprises at the expense of own and borrowed funds.

Foreign investments are manufactured by foreign citizens, legal entities and states.

Joint investments _ These are investments carried out by the subjects of a given country and foreign subjects.

3) on the duration of capital investment distinguishes short-term (up to one year), medium-term (from one to three years) and long-term (more than three years) investment.

4) According to the degree of investment risk, investment can be classified for investments with a low degree of risk, with an average degree of risk and with a high degree of risk.

5) in relation to the life cycle of the enterprise, real investments can be divided into initial, extensive investments and reinvestment.

Initial investments - investments on the creation of an enterprise, firm, service facility, etc.; Investors investments are used for the construction or purchase of real estate (buildings, structures, land plots), for the acquisition and installation of equipment, the formation of working capital.

Extensive investments are sent to the expansion of existing enterprises, an increase in their production potential, including expansion of the scope of activity.

Reinvestment is associated with the process of reproduction of fixed assets in existing enterprises at the expense of their free funds (consisting of depreciation deductions and part of profits directed to the development of production).

6) Based on the appointment of investments, real investments can be reduced to the following main groups:

· Investments intended to increase production efficiency; Their goal is to create conditions for increasing the effectiveness of the current enterprise, a decrease in production costs by replacing the equipment to a more productive or movement of production facilities in the country's regions with more favorable conditions of production;

· Investments in expansion, diversification of production - to expand the volume of products for already developed sales markets within the framework of existing industries, to expand the scope of services provided;

· Investments that ensure the survival of the enterprise include the costs of conducting research and development work, advertising, marketing, preparation and (or) retraining of personnel, including new technologies;

· Investments providing a state or other major order;

· Investments related to ensuring the requirements of the law.

7) According to the nature of the participation of investors in investment projects, direct and indirect (indirect) investments are distinguished.

Direct investment implies the direct participation of the investor in the investment process - the investor itself determines the object of investment, as well as the organization of financing an investment project. Sources of financing in this case can be both an investor's own funds and borrowed funds.

Indirect (indirect) investments - investment investment, individuals or legal entities in securities, manufactured by financial intermediaries who place funds invested by investors in the implementation of investment projects at their discretion, based on the forecasts of the profitability of a particular investment project.

2. The value of investment

As an economic category of investments perform essential functions, without which the normal, cost-effective development of the country is impossible. It is the investment to a large extent to form the future of the country as a whole, individual regions, each economic entity - investments produced today are the basis of tomorrow's welfare. In turn, the current economic condition is largely predetermined by past investments. The value of the investment is that the implementation of their functions is a prerequisite and the basis of the following:

· Structural restructuring of social production, balanced development of all branches of the economy;

· Extended reproduction;

· Acceleration of scientific and technological progress;

· Ensuring state defense capability;

· Development of financial markets, banking sector;

· Improving the quality of goods and services, ensuring their competitiveness;

· Protection of the environment, solving environmental problems;

· Increased employment, reducing unemployment;

· International cooperation;

· Development of the social sphere.

3. Investment process. Stages and phases of the investment process

The investment process is a sequence of stages, actions, procedures and operations on investment activities. The specific current of the investment process is determined by the object of investment and types of investment (real or financial investments).

Three stages are allocated as the main stages of the investment process.

On the first (preparatory) stage, decisions are made to invest in its first phase, form investment goals. In the second phase, the direction of investment is determined. In the third phase, the choice of specific objects for investing, preparation and conclusion of the investment contract. The signing of the investment agreement invested material and intangible benefits is attached to investment status.

The second stage of the investment process is the implementation of investments, practical actions on the implementation of investments following the legal form through the conclusion of various contracts. They may be agreements related to the transfer of property; Contracts aimed at fulfilling the work or provision of services, licensed and other civil law contracts. The second stage is completed by creating an object of investment activity.

The third (operational) stage is a stage associated with the operation of the established object of investment activities. Within the framework of this stage, the production of goods, the performance of work, the provision of services is organized; The marketing system and the sale of a new product is created. During the operational stage, investment costs are compensated, income from the implementation of investments are generated. It is this stage that coincides with the payback period of investments.

4. Goals and investment directions

Among the external factors affecting the choice of investment forms, the following two factors are the most significant: inflation and interest rates in the financial market.

Investment objectives can be:

· The desire of the company to increase profits;

· Expansion of the company's activities;

· The desire for the prestige, public influence, power;

· Solution of social problems, such as the preservation and increase in jobs, reducing the level of unemployment, increasing the cultural and educational level of people;

· Solution of environmental problems, etc.

conclusions

The investment process is a sequence of stages, actions, procedures and operations on investment activities. Specific flow of investment.

List of sources used

1. Bocharov V.V. Investments. - St. Petersburg: Peter, 2009. - 384 p.

2. Chinenova M.V. Investments. - M.: Knorus, 2007. - 248 p.

3. Tkachenko I. Yu. Investment. - M.: IC "Academy", 2009. - 240 s.

4. Kovaleva V.V. Investments. - M.: Prospekt, 2004. - 440 p.

5. Bocharov V. V. Investment management. - St. Petersburg: Peter, 2000. - 160c.

6. Neshita A.S. Investments. - M.: Dashkov and K, 2007. - 372 p.

7. Vakhrin P.I. Investments. - M.: Dashkov and K, 2005. - 380 p.

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The current concept of investment is quite wide. In the narrow sense of the word, they can be characterized as the involvement of funds in the capital of the company. As a result of the investment activities of individuals and organizations, the latter receive a certain share in the authorized capital of the company, and are also empowered to participate in management. What is the economic essence of investments and what their functions are and will be told in this article.

Investments as an economic concept

Speaking about the concept of investment, it should be noted that there are many of its definitions. In general understanding, investments are characterized as a fundamental element of the economy, without which the latter is impossible. Three moments can be distinguished that characterize the essence of investment:

the investment process means the implementation of investments of material or intellectual resources into a specific project with a certain goal;
the investment period determines the structure of this process, affects the choice of instruments and strategies of behavior in the market;
it is necessarily the form and amount of income, which can perform in the form of both material and non-such goods.

It should be understood that not any investment can be called an investment. For example, buying an apartment for accommodation in it does not apply to this category.

But if you acquire real estate in order to subsequently take it back and retrieve profit, then such a purchase will be considered an investment.

Goals and objectives

The main objectives and objectives of the investment process, allowing to disclose its essence, are concluded in the following moments:

profits;
conservation of capital;
expansion activities (characteristic of investors carrying out the production of certain goods);
social moments (for example, staff training);
the growth of the prestige of the enterprise in the market.

There are several classifications, but a non-standard scheme deserves special attention, in accordance with which two types of investment are distinguished:

commercial;
social.

Their essence and value as a comparative characteristic are presented in the table below:

Other classifications

Modern science and practice allocate several investment classifications. The most popular of them should be considered more. Depending on the type and scope of application, three types of investment are distinguished:

real represent capital investments in the means of production;
financials can act in the form of any liquid assets;
intangible represent various social benefits, knowledge.

Depending on the form of investment is divided into:

cash;
earth;
movable and real estate, tools, production capacity;
property rights in the form of licenses, patents, franchises, trademarks, etc.

Depending on the source and form of ownership of it, investments may be:

state, regional and municipal;
private;
foreign;
mixed (under state-private partnership).

If we talk about the object of investment, then depending on this criterion, such types of investments can be distinguished as:

capital assets (property, precious metals);
cash assets;
intangible assets.

Of particular importance is the nature of the solution of the tasks set before the investor. This criterion allows you to allocate such types of investment:

aimed at improving production efficiency;
intended for the expansion of markets and production itself;
working aim to create new production;
aimed at meeting the requirements of state bodies.

For an investor, the degree of influence and control of business has a fundamental importance to its part. This criterion allows you to highlight such types of investment as:

providing complete control of the business owner (the investor does not have absolutely no tools with the help of which he could implement the impact on the company's policy);
providing the right to influence business, but not allowing complete control (such a situation is possible if the investor has a blocking stake in the investor, the size of which exceeds 25%);
not allowing complete control, but if there is a significant impact on the organization's activities (this is possible in the presence of a controlling stake, representatives on the Board of Directors who form most).

These are the most popular investment classifications.

Video. Types of investment

It is also worth highlighting the one at the basis of the degree of participation of the investor. Thanks to this criterion, direct, indirect and portfolio investments are distinguished. The first act in the form of resources that are aimed at direct implementation of production problems.

Indirect investments provide the right of mediated participation in the investment project (for example, through credit financing). The portfolio provides for the implementation of investments in the financial instruments of the market (stocks, bonds, etc.).

The main functions of investment

Analyzing the definition of investments, it can be concluded that these processes are carried out both in public and at the particular level. The main purpose of investments is to increase the welfare of the state. Therefore, the value of functions is to satisfy the interests of all subjects. The main investment functions include:

Distribution. Its essence comes down to the fact that when choosing an object of investment, a subject that implements them contributes to the development of a particular industry.
Regulating. Due to the fact that the importance of investment is global, they affect related sectors of the economy. For example, the opening of the new plant may assume the laying of new roads, the construction of recreation bases, job creation and much more.
Stimulating. Investments involve investing in the improvement of separate industries (science, technology, education and others). This increases the standard of living and well-being of the country.
Indicative. This function is directly related to the processes of capitalizing and creating a harmonious balance of an open economic system.

Features of the composition of investments

Recomposing the economic essence of investment, it is impossible not to mention the main characteristics of their composition:

Subjects here can act physical and legal entities, as well as government agencies and enterprises.
Sources of investment can be internal (domestic) and external (foreign).

Specificity projects

To implement the goals and objectives of the investment, this tool is used as an investment project. Its creation contributes to the fact that the investor receives complete information about the object of investment, so that it will be able to take the necessary solutions.

Investment projects can be defined as a set of activities or a peculiar system of financial, legal, and accounting documentation describing the process of achieving established goals. All investment projects can be classified in several criteria.

Depending on the period, it is allocated short, medium and long-term.

Scales, projects can be small, medium, large and mega. The first are intended to solve certain tasks in the framework of one company. The last two types are usually aimed at solving several tasks within a certain region.

A few words about resources

Of particular importance in the implementation of a specific investment project, resources and sources of their formation are acquired. They are defined as an existing capital that the investor intends to invest in a project for profit or economic benefits.

As resources such objects as:

cash;
securities;
the property;
information and labor resources.

Moreover, such resources can be both own and borrowed or attracted. For example, to implement a specific project, an investor may invest its funds (these will be our own resources), to take a loan in a bank for this purpose (this will be a borrowed resource) or to invest the funds he received from the sale of shares (this will be the raised resource).

Conclusion

Summing up this article, it should be focused on the economic essence of investment. It consists in the following moments:

the ability of the ability to profit;
the presence of personal goals in investors;
capital movement, which arises due to investment;
promoting the development of the state economy as a whole.

The value of the investment cannot be overestimated. Without them, enterprises, institutions and organizations would be ineffective.

Video. What is investment

Introduction 2.

1. The effect, economic essence and types of investment. 3.

2. Investment. 3.

3. Investment process. Stages and phases of the investment process. 3.

4. Topics and investment directions. 3.

Conclusions .. 3.

List of sources used. 3.

Introduction