The productive activities of organizations that are not investors have a functional orientation that defines it as a priority form of real deposits. The choice of such an option is directly related to the need for the efficient use of the appropriate resources formed for selected projects.
Financial investments are ongoing business activities related to the acquisition of securities, corporate rights or other monetary instruments. Investing in them free funds can have various goals. The main ones are: the conversion of savings into highly liquid property documents, the receipt of possible future income, as well as control over the issuing institution. In addition, financial investments are a form of application of the free capital of the organization. It has some features:
- allows you to make external investment both in the country and abroad;
- enables the enterprise to realize strategic development goals, while saving its own funds;
- requires a minimum amount of time to take the necessary managerial actions (compared with real projects);
- committed in the later stages of the organization's development, after its needs are met;
- financial investments - an independent type of economic activity;
- allows you to invest in speculative instruments without risk and pursue a policy as a serious conservative investor;
- needs the speed of making various decisions in the process of financial transactions.
To solve the problems of evaluating, forming and implementing sponsorship policy, one needs to take into account the classification characteristics of deposits. Forms of financial investment are divided into two main groups.
By type of property :
- state financial investments are investments made by government and administration at the expense of borrowed funds and extra-budgetary funds, as well as enterprises at the expense of their own capital;
- private deposits are made by non-governmental organizations, citizens, societies and unions, business associations and other legal entities acting on the basis of collective ownership;
- foreign financial investments are made by legal entities of other countries and other states;
- general investments relate to citizens of a particular country of which they are resident or not.
By methods of participation in the investment process:
- direct investments - these are operations of economic activity that provide for the investment of capital in the authorized capital of a legal entity (funds are exchanged for corporate rights);
- portfolio investments involve the purchase of securities and other financial assets in the stock markets.