Capital is not only a book by the famous economist Karl Marx

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:46

This article does not purport to be a comprehensive discussion of various types of investments by individuals or legal entities. It is an overview, helping 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 any 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, seeking to further expand their influence on the enterprise in which they invested.

Share capital is the primary form, which is the amount of funds invested in the company by its shareholders, divided according to its composition into the nominal value of shares and share premium. Par value refers to a specified price per share, which may also be referred to asannounced share. The issue of this type of security is intended to attract additional funds in order to increase the authorized (share) capital.

Various options are used to pay for shareholding forms, but the factor that is mandatory is that capital is securities held by entrant participants, various property or other rights that represent a monetary equivalent. The valuation of property funds intended for payment for shares is provided for by an agreement between all founding shareholders.

It should be noted that financing a growing business is often quite problematic. Venture capital can help with this - these are investments that help cover the needs of a firm or company in financial resources and enter further stages of development.

It is well promoted by well-organized work to attract outsiders while retaining the overall management of the enterprise and providing appropriate guarantees to ensure effective control of the venture capitalist.

At the same time, this activity should provide convincing arguments in its proposals for the investor, showing a sufficient level of prospective income. In the event that the general course of development of the firm (company) does not meet the general requirements for ensuring stable and sustainable growth of the company, it will be quite difficult to attract appropriate capital. This may lead tostagnation, loss of control and bankruptcy.

Thus, attracting various investments from both direct shareholders and venture capitalists directly depends on the right choice of your niche in the general market, the ability to plan your actions and direct work.

To increase your we alth, 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.