Definition Of Investment

Let's say you decide to buy a car. Therefore, funds for this purpose you have. But why did you not spend it at today's meal, a diamond ring or a trip to Cyprus, after all, buying a car today, you hereby waive any meet some other pressing (though perhaps not very important) needs. Car owners could give to this question a lot of different answers, say, those: because I do not want to spend much time on the trip public transport to work, to give to friends or; because getting pleasure from the process of driving a car; because I want to make money for private carting, etc. Please note that all of these responses are buying a car allows you to get some income, pleasure or to reduce losses in the future. The fact that you are buying a car, but do not give up the purchase, means that failure to meet today's needs (say, a diamond ring) you value less than the future result from the use of a car. So, these operations are operations and investments, or investments, and the car stands at the same time as an investment. Similarly, talk and businesses, buying for your business equipment, buildings or computers (ie, investing in these facilities, or conducting investment in them).

In all these cases, they have some damage from what is not spent the money immediately to any urgent current needs, but also have the opportunity to increase their profits in the future. Thereby The term 'investment' as it is commonly used, means both the action and the result of this action, ie, the decision to invest, invested, and the good (cf. the phrase 'are proposed investment … ' and 'investments amounted …'). From the above example we have the following very general descriptive definition of 'investment', belonging to P. Masse, which we further refine and concretize. Investing is an act of exchange now meet certain requirements to meet the expectation of its future with the help of invested wealth (ie, buildings, structures, equipment, supplies inventory, securities, etc.

The term 'expectation' here stresses the dual nature of investment decisions: its temporal aspect, as the expectation refers to the future, and it character as a bet, since waiting may be deceived. Thus, the investment decision involves: the presence of the subject of investing, making a decision about investing; presence of an object investment (invested wealth); costs associated with failure of satisfaction of needs; the value of the expected results (including the risk of obtaining them). Next, we will mainly consider the situation where actors are investing company and not individuals. For them, the investments are usually operating expenses in cash, and the results – expected earnings in cash. So if you pay attention only to the monetary aspect of investing and accept that any requirements have monetary value, it follows from this definition we can conclude that investing is an act of investment funds (Called equity) in order to generate income in the future. That such a definition is given in some textbooks. Of course, the above definitions are neither final nor accepted – in different scientific works, textbooks and teaching aids concept of 'investment' is defined differently. Here are a few of these definitions.

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