Republic of uzbekistan andijan machine-building institute fundamentals of business management

The creative importance of investing. 
The functioning and growth of the economy 
depends on how easily the government and companies, as well as private individuals, can attract 
money to finance the growing demands. For example, if it were not for mortgage loans, many 
people would not be able to buy houses, and without loan funds, there would be very few workers 
employed in the construction of houses and the production of building materials. Therefore, if the 
amount of unsecured lending to real estate decreased, it would ultimately lead to a decrease in 
overall economic activity in this country: this is understandable, because it would be easy for those 
who can save money to get it, which would provide the necessary conditions for economic growth. 
Investment premium.Income or profit on investments can be received as current income 
or growth in the value of invested funds. For example, money placed in a bank savings account 
will provide current income in the form of regularly calculated interest, while money invested in 
the purchase of a vacant plot of land will provide income in the form of an increase in the value of 
the plot between its purchase and sale. Those in need of funds can draw on those who have excess, 
and the income or profit must cover the risk of the money suppliers. To put it more simply, money 
suppliers need to be rewarded, and money buyers need to be rewarded in order for the investment 
process to go smoothly 

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must provide this award. The size and form of the reward depends on the variety of transactions 
with securities. 
The sequence of costs in investing.In practice, different approaches to investing are used. 
One of them is the in-depth planning of expenses aimed at achieving specific goals. Another, the 
opposite approach, is action contingency, where decisions are made based on intuition. As 
experience shows, the results are usually higher when applied optimally. Therefore, an investor 
should first make a plan, and then implement an investment program in accordance with the overall 
financial goals. As a result of the implementation of such a program, it is necessary to form an 
investment portfolio that provides the intended income at the level of conicity of risk. We will 
briefly describe the main steps in investing, as it helps us to consider the concepts, tools and 
specific technical methods of this process.