Gross and net investment is a process of interaction between the two parties: the entrepreneur and the investor

To date, there is a large number of knowledge-intensive concepts that determine the terminology of investments, but basically they can be viewed as the interaction of two parties: the enterprise and the investor. This process implies the possibility of investing in the activities of the enterprise for further profit or other economically beneficial effect.

Companies need investments in most cases to expand their operations, increase production levels or areas of commercial influence (net investments that do not affect the depreciation fund).

In this process, there are a large number of ways of investing funds and their implementation by enterprises. This, in turn, gives reason for theorists to interpret the definition of the concept of investments in many ways , using beautiful scientific phrases and sentences. And thus they discourage a simple investor from taking the first steps towards increasing the capital of a plant with the aim of further development for the benefit of the motherland. but Wishing to implement the planned investment projects should not "bother", hammering the whole course of economic science, because everything is very simple: gave money (or other values needed by the enterprise) - wait for the return. The one who "gave money" is an investor and will benefit in its time determined by the agreements. And the one who "took the money" is the object of investment.

And in fact, this process is quite simple. What could be simpler than having capital, to enter into someone's business with him and, without taking a particularly meaningful part in the correctness of disposition of his funds, wait for profit?

First of all, it is necessary to understand that the investment is classified according to various characteristics, depending on the factors of their application (term, form of ownership, source of funds, etc.), which, although they carry a certain information load, are intuitive concepts and do not require superfluous Appeals to economic literature. For example, according to this division, domestic investment is divided according to a regional characteristic (a process that takes place within the state). They can also be direct if there are no intermediaries when investing funds (banks, lending institutions, financial communities).

In addition to the intuitive classification, they are divided into gross and net investments. The first to consider the full amount of increase in the company's capital stock, including depreciation costs (equipment repair, purchase of spare parts, fuel, etc.). Net investments are means aimed at expanding the activities of an enterprise, increasing production scales or spheres of commercial influence, with the exception of depreciation costs.

Thus, any person who owns capital and has no desire to give it to the bank can become an investor in a small enterprise by entering into a "share" using net investments, buying equipment, transportation, tools, etc. If there is a desire to participate in the life of a large corporation, you can buy its securities.