Where there is economic activity, there is always a problem associated with property. People constantly ask questions: who is the owner of the plant, factory, land, real estate, spiritual wealth?
Private property in the economy is nothing but the relationship between people concerning the material basis of any economic activity or means of production. The one who is the owner of material production factors (capital and land), and is the steward of the effect to which economic activity seeks . Private property is now the backbone of a market economy.
Private property is nothing more than the consolidation of the right to control the wealth of life and economic resources for specific people, as well as their groups. Within the framework of this concept, such objects as land, capital, final goods, income, and others, become personified, which means that they have a specific owner. Every citizen has the right to perform actions with his property that do not contradict various legal acts and the law in general. A citizen can transfer the right of possession, disposal and use of his property to other people and remain the owner, alienate it to them, pledge it and dispose of it by any other means. In addition, in general, every person has the right to have private property.
Private property is divided into that which includes the means of production of a person working independently (artisans, peasants and other people living by their own labor have it) and that which is imposed on the material conditions of production of those people who use other people's labor. The second type of private property is usually owned by people owning large farms and employing an impressive number of workers.
Private property takes several forms:
1. Individual - family or sole proprietorship. Enterprises in this form of ownership in a market economy are numerically predominant. This form is presented in small business (small shops, gas stations, cafes, farms). It is divided into personal, which includes objects that do not bring any income (consumer goods) and private, it includes those objects that generate income (production factors).
2. Joint-stock - we are talking about group private property, it is created only through the issuance and further sale of securities (bonds and shares). A stock is such a security that accurately indicates that a certain amount of money has been contributed to the total capital of the joint-stock company, it gives its owner the right to make a profit - dividends. In addition, he can take part in the distribution of all property balances if the joint-stock company is liquidated. A bond is such a security, which indicates that its owner has provided a loan to a joint-stock company. It gives him the right to receive a fixed income and is subject to redemption at a specific time.
3. Cooperative and collective - we are talking about joint (common), shared ownership. It assumes that appropriation has a collective-group nature, as well as the sharing, ownership and disposal of results and factors of production.
Private property has both disadvantages and advantages. Its characteristic features are spontaneous development, high efficiency. Such property stimulates enterprise, initiative, responsibility in relation to work. However, it also has negative traits - exploitation, desire for profit, spontaneity.