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2007-04-09 | caishoow

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Money into capital refers to the process. A-kind investment and portfolio investment. The former is money invested enterprises, through the production and business activities to a certain profit. The latter is the currency issued by enterprises to buy stocks and corporate bonds, indirectly involved in the business of distribution of profits.
Term investment in the financial and economic aspects of a number of relevant significance. It involves the accumulation of property in order to receive benefits in the future. Technically, the word means "will be an article Add to other parts of the action" (perhaps initially with the clothing or "dress" related). From the finance point of view, in comparison to speculation, the investment of time longer, even more difficult in the future is to a certain time period was a relatively sustainable and stable cash flow receipts, the accumulated earnings in the future.

Corporate investment activities clearly fall into two categories: (1) to lay the foundation to expand production at home, that is, the acquisition or construction of fixed assets, intangible assets and other long-term assets to pay in cash, (2) external expansion, that is, foreign equity, debt payment In cash.

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