This article does not claim to be a comprehensive review of various types of investments by private or legal entities. It is a review that helps to understand the main thing: capital is what is used to make a profit and, accordingly, improve one’s material well-being.
Investing in the activities of an enterprise involves generating income. Someone prefers a small, but relatively stable profit. Others invest with the probability of returning their resources as soon as possible. Still others combine both previous examples, striving for the subsequent expansion of their influence on the enterprise in which they invested.
Share capital is the primary form, which is the amount of money invested in the company by its shareholders, divided by its composition into the nominal value of shares and share premium. Par value refers to a certain price per share, which may also be called a declared share. The issue of this type of security is intended to attract additional funds in order to increase the authorized (share) capital.
Various possibilities are used to pay for joint-stock forms of ownership, but the fact that capital is securities held by newcomers, various property or other rights representing a cash equivalent is mandatory. The valuation of property assets intended for payment of shares is provided for by agreement between all the founding shareholders.
It should be noted that financing a developing business is often quite problematic. Venture capital can help with this - these are investments that help to meet the financial or financial needs of the company or company and enter further stages of development.
Its appearance is well-facilitated by well-organized work to attract outsiders while retaining the overall leadership of the enterprise and providing appropriate guarantees to ensure effective control by the venture capitalist.
At the same time, this activity should in its proposals for the investor provide convincing arguments showing a sufficient level of prospective income. In the case when the general course of development of the company (company) does not meet the general requirements for ensuring stable and sustainable growth of the company, it will be quite difficult to attract the appropriate capital. This can lead to stagnation, loss of control and bankruptcy.
Thus, attracting various investments both among direct shareholders and from the number of venture capitalists directly depends on the correct choice of their niche in the general market, the ability to plan their actions and direct work.
To increase your well-being, use the available opportunities taking into account possible risks and negative circumstances. Invested capital is the total resource of all participants, which is easy to lose and difficult to recover.
