Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie (Feb 2021)
GENERAL NOTIONS REGARDING INVESTMENTS
Abstract
The growth and development of the economies of the world's states are strongly influenced by the volume and dynamics of investments made or in progress. In the economic activity, the investments occupy a central place, with a dynamizing role both for the sphere of production of goods and services and for the sphere of consumption. Investments represent a complex concept, with multiple approaches and implications, whose problems are quite difficult to approach. In the broad sense, investments mean all expenses related to an activity undertaken in order to obtain a profit) construction of bank deposits, trading of shares and bonds, initiation and development of businesses. Investments should not be confused with any spending on the economic system. Thus, the expenses with the acquisition of raw materials, semifinished products, measuring and control devices, payment of salaries, etc. it does not represent an investment effort, but an effort for the development of economic activities. In a narrow sense, investments represent those expenses incurred for the development, modernization and refurbishment of existing economic and social objectives as well as for the construction of new objectives.[1] It should be noted that the notion of investment does not refer only to the funds allocated to economic activities, but also to other activities of a social, ecological, educational, military, medical, etc. nature. The capacity and investment potential of an economic agent (public or private) is reflected both in the volume of financial, material, human, informational resources involved, and in the capacity of the human factor to obtain superior economic effects from the resources used. Investing means placing capital in an enterprise. Another definition involves the placement of capital in industrial, agricultural, commercial enterprises, etc., with the aim of obtaining profits, i.e. allocating sums and other material means for the creation of new fixed funds, for the widening, re-use and modernisation of existing ones.
