2. WHAT IS INVESTMENT
HISTORY
TYPES OF INVESTMENTS
IMPORTANCE
WHAT IS INVESTMENT COMPANY
INVESTMENT PROCESS
WHAT IS RECENTLY HAPPENING IN
INVESTMENT SECTORS (FDI)
INVESTMENT BANKING
CONCLUSION
3. Investment has different meaning in finance &
economics
Finance investment:- It is putting money into
something with expectation of gain, that upon
through analysis, has a high degree of security for
the principal amount, as well as security of return,
within an expected period of time.
In economics:-Investment is related to saving or
deferring consumption. It involves in many areas
like business management & finance whether for
household, firms or government.
4. In 1700 BC provide a legal framework for
investment establishing a means of pledge of
collateral by codifying debtors & creditors right
in regards to pledged land.
In early 1900s purchase of stock, bond & other
securities were described in media, academia &
commerce as speculator.
In 1950s the term investment had been co-
opted by financial broker & their adverting
agencies to promote speculation.
5. FUNDS
REAL STATE
STOCK MARKET CURRENCY
INVESTMENT
DEPOSITS
BONDS
OPTION S
7. Autonomous investment:-
Investment which does not change with the
change in income level, is called as autonomous
or government investment.
Induced investment:-
It is the investment which changes with changes
in income level.
Financial investments:-
Investment made in buying financial
instruments such as new shares, bonds,
securities, etc. is considered as a Financial
Investment
8. Real investment:-
Investment made in new plant and equipment,
construction of public utilities like schools, roads
and railways, etc., is considered as Real
Investment.
Planned investment:-
Investment made with a plan in several sectors of
the economy with specific objectives is called as
Planned or Intended Investment.
Unplanned investment:-
Investment done without any planning is called
as an Unplanned or Unintended Investment. In
unplanned type of investment, investors make
investment randomly without making any
concrete plans.
9. Gross investment:-
Gross Investment means the total amount of
money spent for creation of new capital assets
like Plant and Machinery, Factory Building,
etc .It is the total expenditure made on new
capital assets in a period.
Net investment:-
Net Investment is Gross Investment less
(minus) Capital Consumption (Depreciation)
during a period of time, usually a year.
10. Financial independence.
Increase wealth.
Fulfilling the personal goals.
Desires Of Family members.
Increase knowledge.
Increase vision.
11. Methods of FDI
a. By incorporating a wholly owned subsidiary or
company
b. By acquiring shares in an associated enterprise
c. Through a merger or an acquisition of an unrelated
enterprise
d. Participating in an equity joint venture with another
investor or enterprise...
12. An investment company is a company whose
main business is holding securities of other
companies purely for investment purposes. The
investment company invests money on behalf of
its shareholders who in turn share in the profits
and losses.
There are 3 types of investment companies
a. Open-End Management Investment Companies
(mutual funds)
b. Closed-End Management Investment Companies
(closed-end funds)
c. UITs (unit investment trusts)
14. Foreign direct investment (FDI)
Foreign direct investment (FDI) refers to the
net inflows of investment to acquire a lasting
management interest (10 percent or more of
voting stock) in an enterprise operating in an
economy other than that of the investor.
There are two types of FDI:-
a. inward foreign direct investment
b. outward foreign direct investment