Investment activity

KEY TERMS USED IN INVESTMENT

Investment is a placement of capital in certain legal entities for a long period (minimum more than a year) either with the purpose of getting additional profit or with the purpose of obtaining influence. In­vestment is mostly performed in a form of purchase of securities of joint stock companies.

Investments can be direct, indirect and intellectual. There is also such notion as alternative investments — placements of capital in sub­jects of art, stamps, ancient coins, etc.

Investments in human capital — any measure undertaken for in­crease of labour productivity of employees by means of raising their qualification and development of their skills); expenditures on the im­provement of education, health of workers.

Intellectual investments — placement of money in the training of specialists, know-how, and also in conducting mutual scientific developments.

Portfolio investments — placement of funds in the long-term se­curities. It is the process of supplying capital to a certain institution through a loan or purchase of stock without sharing in the institution management.