Professional Documents
Culture Documents
Legea Republicii Moldova cu privire la investiiile n activitatea de ntreprinztor // Monitorul Oficial al Republicii Moldova nr. 64-66 din 23.04.2004 Strategia Republicii Moldova de atragere a investiiilor i promovare a exporturilor, aprobat prin Hotrrea Guvernului Nr. 234 din 13.10.2006// Monitorul oficial al Republicii Moldova nr.43-45 din 30.10.2006 Strategia Naional de Dezvoltare Moldova 2020 . Hncu R., Bunu M., Dascaliuc D. Lucrare metodico-didactic Bazele activitii investiionale (sinteze i aplicaii). Chiinu: Departamentul Editorial-Poligrafic al ASEM, 2010, 119 p. Caraganciu A., Domenti O., Ciobu S. Bazele activitii investiionale. Chiinu : Ed. ASEM, 2004. 320 p. Huru D. Investiiile: capital & dezvoltare. Bucureti: Editura Economic, 2007. Cistelecan L. M. Economia, eficiena i finanarea investiiilor. Bucureti : Ed. Economic, 2002. 536 p. Vasilescu I. Romnu I., Cicea C. Investiii. Bucureti: Ed. Economic, 2000.480p. Prvu D. Eficiena investiiilor. Bucureti: Ed. Lumina Lex, 2003. 291 p. Stoian M. Gestiunea investiiilor. Bucureti: Ed. A.S.E., 2003. .., .. . : , 2005. ., ., . . Chiinu, 2008. 305 p.
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Readings
Zvi Bodie, Kane Alex, Marcus Alan J. Essentials of Investments. The McGraw-Hill Companies, Inc. Boston, 2003 Marcus Alan J., Kane Alex, Zvi Bodie. Investments. The McGraw-Hill Companies, Inc. Boston, 2008 Brigham Eugene F., Gapenski Louis C. Financial management: theory and practice. The Dryden Press, 1999 Brealey, Meyers. Principles of Corporate Finance McGraw-Hill. 7ed, 2003 Banacu Cristian Silviu. Investments and risks for sustainable development. www.ase.ro Electronic Journals
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Key terms: capital investment, financial investment, intellectual investments, elements of investment, features of investment, domestic investments, foreign investments etc.
After Studying This Topic You Should Be Able to:
Define the investment Name the elements that identify an investment To characterize the main features of investment Distinguish between real investments and financial investments Confirm the role of investment for the development of businesses and of the national economy as a whole
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Definition of investment
The general idea of investment is that the investor accepts not using the available resources today, so that he would have a higher amount of resources in the future. An investment may be defined as the purchase by an individual or institutional investor of a financial or real asset that produces a return proportional to the risk assumed over future investment period. In other words, investment represents the totality of financial and material resources allocated to create, modernize or extend the economic activity with the reason to earn profit.
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Definition of investment
The term investment, it carries slightly different meanings to different sectors. According to economists, investment is the utilization of resources in order to increase income or production output in the future. According to business theories, investment is that activity in which a manufacturer buys a physical asset, for example, stock or production equipment, in expectation that this will help the business to prosper in the long run. On the other hand, finance professionals define an investment as money utilized for buying financial assets, for example stocks, bonds, bullion, real properties, and precious items. According to finance, the practice of investment refers to the buying of a financial product or any valued item with an anticipation that positive returns will be received in the future. Accounting approach Psychological approach
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Meaning of investment
In all cases the investor is trading a known money amount today for some expected future stream of payments that will be grater than the current outlay. So, results that investment is considered to be a present expenditure, realized for the purpose of future effects in risk and uncertainty conditions.
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Also the Law regulates the forms of investment. !!! Remember other key terms the Law specifies
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Elements of an investment
The subject of investment. An investor can be an individual, a government, a pension fund, or a corporation that is willing to invest its resources. The investment object, that represents the business, building, plant, equipment or real estate for what the investment is initiated; Investment cost, that represents the financial, material (machinery, raw material, production space, and land), human effort made for the realization of the respective investment etc. Effects of the investment, which the profit that is expected to be obtained by the end of the investments life span. The risk, meaning the uncertainty of the future payments, which represents the possibility that the investor wont receive his money or assets back or will receive them but at a lower value. The time funds are committed represents the period of time during which the money or assets wont be available to the investor.
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Present economic theory emphasizes a series of aspects related to the features of investment activity.
Investments are the opposite effect of immediate consumption. The relationship Investment-Time is a specific feature of investing activity. Investments have dual features:
Value sense when investment is viewed as an expense, and represents only a financial resource consumed in the present, with the goal of obtaining some future effects. Physical sense when investment is viewed as an action in which are involved material and technical means, people with the respective knowledge and abilities as well as their interests.
The novelty character that investment manifest, thus investments always deal with the future. Investment can generate spillover effects.
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Classification of investments
is realized in accordance to the some rational criteria: 1. By investment object or nature, there are: Financial Investments which represent any form of investing money for the purpose to obtain dividends, interests and profits Capital or Tangible Investments Nonmaterial or Intellectual Investments are money placements for research and development, personnel training, advertising, purchasing of know-how, licenses to use new technologies
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Capital Investment
As a term has two usages in business. Firstly, Capital Investment refers to money used by a business to purchase fixed assets, such as land, machinery, or buildings. Secondly, Capital Investment refers to money invested in a business with the understanding that the money will be used to purchase fixed assets, purchasing of plants, equipment, rather than used to cover the business' day-to-day operating expenses.
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5. From the point of view of the investment purpose (objective) there can be distinguished:
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INDIVIDUAL WORK
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