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Related to Capital investment: venture capital


1. Economics the amount by which the stock of capital (plant, machinery, materials, etc.) in an enterprise or economy changes
2. Biology the outer layer or covering of an organ, part, or organism



the long-term placement of capital in industry, agriculture, transport, or other sectors of the domestic or a foreign economy for the purpose of deriving profits. In bourgeois economics, two kinds of investments are distinguished: financial investments and real investments.

A financial investment is the exchange of capital for stocks, bonds, and other securities issued by corporations or the state. A real investment is the placement of capital into productive fixed capital (buildings, installations, equipment), housing construction, and goods and material supplies in the country itself and abroad. Investments are realized by private corporations and the state. Private investments are directed into sectors of the national economy where the greatest profit can be derived (primarily, industry); state investments are directed into less profitable branches, for example, into the infrastructure (the underlying economic sectors of society, such as education, communications, and transport). Private investments are financed out of internal resources (depreciation deductions and retained profits) and out of other sources enlisted for this purpose: long-term credit and the issuance of securities. The financial sources of state investments are taxes, domestic and foreign loans, the income of state enterprises, and the issue of new money.

The financial operations involving investments are realized through banks (commercial and investment banks) and other financial agencies: savings banks, insurance companies, investment trusts, pension funds, and the like, which contribute to the accumulation of huge funds that belong to the population and that are used in the interests of the financial oligarchy.

The bourgeois economic experts foresee the limits of investments not in capitalist production relations but in technical production conditions and psychological factors. Although it is true that investments create income and expand markets, the antagonistic class relations of capitalist society ultimately restrict growth. The operation of the universal law of capital accumulation leads to a situation in which, because the investments are followed by a rise in the organic structure of capital, the wealth of the capitalists is growing whereas the conditions of life of the working class are deteriorating.


References in periodicals archive ?
Similarly, financial literature has shown that capital investments are sensitive to cash flow (Bond and Meghir, 1994; Fazzari et al.
There is substantial untapped opportunity, then, in virtually every company with a working capital investment percentage-of-revenue dollar higher than the industry leaders in its category, and/or leading practice companies, regardless of industry.
Manufacturing - Food and drink processing 165 jobs to be created $110 million capital investment
The board will be supported by the Strategic Capital Investment Panel, which will advise on investment proposals.
Manufacturing projects created the vast majority of total capital investments in 2004 and were the source of the greatest number of new jobs.
The 20 largest projects account for $40 billion of capital investment, more than 30 percent of the total investment in projects included in the USIM.
The Bucksport mill was among the first in the world to produce lightweight and ultra-lightweight coated papers; though how long it can continue to operate without an influx of capital investment is questionable, observers said.
The importance to landlords of income stability, risk avoidance and reduced capital investment can give the tenant a useful edge in negotiating a restructured lease.
Biofuels: Venture capital investment in biofuels (which includes ethanol, biodiesel, among others) totaled $740 million in 2006, vs.
Keating shows that "the level of real venture capital investment has fluctuated in the opposite direction with the capital gains tax rate over the past two decades.
Now companies can use Hewitt's data to optimize their human capital investments to impact business results.
The Scottish Office Industry Department and Locate In Scotland -- a government agency that provides assistance to overseas companies considering investing in Scotland -- were responsible for attracting 95 of these projects, representing a planned capital investment of $881 million and 11,072 jobs.

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