Concept and Principals of Investments - AMTAP

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Concept and Principals of Investments 1. definition and fundamentals of investments, 2. classification of investments, 3. role of investments in the economic development Investing - what is that exactly? Probably you have heard many different definitions of investment. There are about 3 thousands definition However, what is the essence of it? The essence is very simple: investing - a present sacrifice for the future. Definition of investment The general idea of investment is that the investor accepts not using the available resources today, so that he would have a higher amount of resources in the future. An investment may be defined as the purchase by an individual or institutional investor of a financial or real asset that produces a return proportional to the risk assumed over future investment period. In other words, investment represents the totality of financial and material resources allocated to create, modernize or extend the economic activity with the reason to earn profit. ...