investment

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investment

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

Investment

 

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.

S. S. NOSOVA

References in periodicals archive ?
Here are four different types of investing activities to consider:
Another company stated in its SEC filling: Management determined that the Company's consolidated statements of cash flows for each of the three years in the period ended December 31, 2004 should be restated to reclassify $16,740,000; $6,666,000; and $65,197,000, respectively, from net cash used in investing activities to net cash provided by operating activities as they relate to distributions of income received from investments in partially-owned entities accounted for on the equity method.
Investing Activities: Companies must continually invest in their productive assets such as equipment and facilities, especially during times of growth.
To complete the section relating to cash flows from investing activities, we recognise any investment income received as follows (note that IAS7 also permits the recognition of interest receivable as an operating cash flow): Cash flows from investing activities Purchase of plant [working A] (1,920) Proceeds from disposal of plant [working B] 240 Interest received [note 1] 192 Net cash used in investing activities (1,488)
Net cash used in investing activities totaled 6,442 million yen, an increase of 5,361 million yen over the previous fiscal period.
Net income from investing activities for the three-month period increased to SEK16.1bn from SEK6.7bn a year ago.
The risk function at global software giant Microsoft forms an umbrella over all the treasury groups, and looks at financial risk (the risk treasury creates through its investing activities) and business risk, such as directors' and officers' risk or earthquake insurance.
investment opportunities and led MSREF's investing activities in New York City.
Cash applied to investing activities 11,802 (24,130)
This is the case with items such as 'payments of debt,' 'additions to intangibles,' and 'other' cash outflows from financing and investing activities.
Cash (used) by investing activities (2,401,235) (508,218)
Underlying cash balance (new treatment) 2 883 5 208 plus net advances 5 511 17 828 Headline cash balance 8 394 23 036 less GFS/AAS31 classification differences 851 1 867 less net cash from investing activities 1 020 11 404 plus accrual adjustments (revenues not providing cash plus cash used "provided" by working capital items less expenses not requiring cash) -3 358 -4 049 Operating result 3 166 5 717 2.