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

Investment process. 
 
 
 
 
 
 
 
 
 
At the highest level, the authorities finance their needs by issuing short-term bonds. 
Sometimes the executive authorities participate in the side of those who offer the money. For 
example, if the city runs out of money at a certain time, instead of keeping it in the current account, 
the city government can invest the money in the short-term financial market and get income. 
affects. In most cases, the state is a consumer of funds, that is, it uses more funds than it provides 
funds. 
Companies.Most companies, regardless of their size, require large amounts of capital to 
operate. Like the agencies of the executive power, their financial needs are divided into long-term 
and short-term. To achieve long-term goals, companies need money to build factories, acquire 
equipment and facilities, and develop new products. Short-term expenses arise from the need to 
provide stock of goods, cover receivables and other current expenses. Companies issue various 
types of debt securities and stocks to finance short- and long-term needs. When they have a 
temporary surplus of funds, they offer the money to others. In practice, many large companies have 
an active and sophisticated cash management strategy and are major buyers of short-term 
securities. Like the government, companies are generally net buyers of funds. 
Private individuals.Individuals can contribute to the investment process in various ways: 
for example, by depositing money in savings accounts, buying bonds and stocks, and taking out 
insurance policies. Choosing financial instruments is often not a simple task, it depends on what 
goals an individual investor has in mind. Private individuals' demand for funds mainly takes the 
form of loans to finance the purchase of property, usually a house or car. However, the amount of 
such demand is very large, private individuals - money 
State 
Abroa
d 
Joint 
Local 

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are net suppliers, in other words they give more to the investment process than they take. As 
governments and companies are net buyers of money, the role of private investors in providing 
money to finance economic growth and development is very important.