FinanceInvestments

Who are investors, or Where does money come from for business?

The modern world is simply inconceivable without a full-fledged commodity-money turnover. It goes without saying that any material relationship must be regulated by certain rules and people. Therefore, in this article, we learn in detail about who investors are, what their role in international financial relations and the impact on the economic development of various enterprises.

Definition

Immediately note that to date the global trend is such that no prospective project will get proper development without involving certain financial figures.

So, who are investors? According to the accepted terminology, these are individuals (both physical and legal) who invest their own money in various projects with one single goal - to get the maximum profit for themselves.

Empowerment

Attracting investors gives a person a chance to raise his business to a new, higher level. In addition, in order to better understand who investors are, it should be noted that the money allocated by them is most often used to expand, for example, production capacity, modernization of technologies and equipment, training of personnel, conducting research activities.

Sources of investments

To get money today to perform scheduled tasks, you can:

  • In a banking institution;
  • In a venture fund;
  • From a private investor.

Each of these points will be considered in detail.

First of all we note that any bank is a storehouse for a large amount of money, but this does not mean that its owner will scatter them in all directions. It is important to understand that bankers in their investments maximally seek to avoid risk. To this end, they present their borrowers with very stringent requirements.

Absolutely all banks act in the role of an investor only on condition of stable financial position of the company, trying to take money in debt. Often, a banking institution requires a pledge or return a loan with the accrual of certain interest. At the same time, bankers are closely studying the documentation, and if there is even the slightest doubt about the client's solvency, the money will be refused.

Venture funds stand apart as investors . They are the easiest to attract to investing money in innovative projects.

In turn, private investment Are possible only when a particular person sees his personal interest in a particular activity and understands that thanks to her the invested money will return with a profit. Strictly speaking, each such investor is selected individually depending on the direction of the business. At the same time, the client will be obliged to provide either a business plan or technical and economic calculations on the basis of which the rationality of further cooperation between potential partners will be determined. But in any case, private investment To get much easier than to negotiate with a bank or a venture fund.

Stocks and bods market

This segment of the world money market is also saturated with various actors. We will note such a character as a financial investor. The main task of this individual or legal entity is to earn as much as possible using its investment portfolio and a well-thought-out strategy of its own. We will become acquainted with the types of data of depositors.

  • Aggressive investor. He is driven by the desire to achieve maximum profit. Very often he invests money in new, completely uncharted projects, capable in the long term to bring fame and huge income. At the same time, the risk is very high.
  • Conservative investor. Its main goal is to make a profit on the basis of calculated investments. He never pursues a maximum, but strives for reliability and security of contribution.
  • Moderate investor. In his investment portfolio, there is always a balance between adventurism and logic. Very often he acquires state securities, shares of well-known and very stable corporations and companies.

Profit sharing

In any business there are nuances. In this regard, do not think that the money allocated for the development of the enterprise or business, are given just like that. All companies-investors are only trying to get the maximum possible dividends. Although there are examples where the borrower literally "clamps" money for interest payments. So, on the basis of the list of S & P 500, such global giants as Berkshire Hathaway, Google and Apple are not too eager to share profits with their depositors, and this despite the fact that they can not be called unprofitable. According to experts, if these companies turned to their shareholders face and began to pay a little more money than now, then the value of shares of these titans of the new technologies market has increased significantly.

We hope that Thanks to this article It became clear to you who such investors are and for what they exist.

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