financial investment
Financial investment is the purchase by economic entities and owners of securities of different issuers. In this case, the inflow of capital in the business of going through the investment of funds in securities. Financial investments are considered as an active form of the effective use of temporarily free capital or as an instrument of implementation of the strategic objectives related to diversification of the operating activities of the enterprise. The implementation of the financial investment is associated with a number of features, the main of which are:
1) financial investments are independent business activities of the enterprises of the real sector of the economy;
2) financial investments are used by enterprises of the real sector to obtain additional investment income when you use the free monetary assets (this flow is especially important for periods, when the temporarily free capital can not be effectively used for the expansion of operating activities) and to protect them from inflation;
3) financial investments allow the enterprise to hold a different investment policy: from too conservative to very aggressive and select the investment instruments of a set that is on the market with a wide range of values of a "yield - liquidity and yield - risk (the risk-free instruments for speculative instruments with higher risk);
4) the process of management of the financial investments allows you to make decisions with the help of more simple and less time-consuming procedures of management, in contrast to real investment, associated with significant costs for the preparation of investment projects;
5) in connection with higher volatility in financial market conditions, compared with commodity markets, the adoption of decisions on financial investment is of a more operational nature.
As a rule, two main forms of investment, real and financial, are complementary, not competing. For example, funds for the construction of Assembly production (i.e., on the implementation of the real investment) can be obtained by the sale of new shares on the primary securities market. In turn, the purchase of the shares, represents a financial investment for the buyer, which can then be sold on the secondary securities market.
Regulation of investment activities is determined by the hierarchical level of the subject of the research: the state level, sectoral, regional, economic object. On the processes of regulation of the investment activity is influenced by-stage in the life cycle of an object, the principles of the investment portfolio, methods of planning of investments (current, strategic, resource, structural planning, etc.), methods of planning of investment projects (investment design, business-planning, budgeting, methods of monitoring and evaluation of the investment.
