Topic 1 : The economic content and nature of investments 1. The main purpose and objectives of the subject Investment, its relationship with other disciplines. 2. The economic content of the concept of investments. The main classification of investment. 3. The role of investment in development macro and micro economy.

Today it has become clear that strong economic growth of the Republic of Uzbekistan can be achieved through economic restructuring, developing industrial production through technical upgrading of production facilities, modernization and production of competitive products - all of these require investments for a long period of time. Creating any economic production and non-production facilitation require the diversion of investment resources and their mobilization, effective allocation and use.

In this regard, one of the objectives of the investment policy of Uzbekistan and many other countries with transition economies is to attract FDI into the national economy. As you know, foreign investment organically connecting with local natural raw materials and work force serves as catalyzer of rapid economic growth of the country, carries out investment functions at the macro and micro levels. Moreover, foreign investors in addition to their money and financial resources, bring into the country the elements of a civilized market: quality management experience, marketing, innovation resources, information technology as well as international norms of partnership and cooperation, provide access to the world market by already-established contacts and areas of distribution.

Today, the improvement of the ways of attraction foreign direct investments and creating favorable investment climate for foreign and national investors are the main tasks of implementing economic reforms in Uzbekistan. Performing the tasks said above, Uzbekistan attracts more investment year by year. In 2017 to the economy of the country investment were attracted in amount 11 billion and 900 million US dollars and this factor grew on 7.1 % to the past 2016.

The subject of the course "Investment is: Economic and financial relations connected with organization and financing of investment.

The main purpose of the course "Investment" - to introduce students to scientific and theoretical knowledge about investment, investment policy, sources, forms and methods of investment, development of basic economic categories and concepts in this area.

The main objectives of the course "Investment" are: Defining the role and importance of investment activity, investment policies in the economic development of the country; Study of international and domestic experience in the formation of a favorable investment climate and attract foreign investment; Identify the main methods and sources of investment financing; Research the role and key trends in capital construction sector; Study theoretical foundations of investment activity and economic nature of investments;

The main objectives of the course Investment" are: Study of the characteristics and types of project financing; Study of the mechanism of financing leases, innovation activities and intangible assets; Study of investment risks, their types, methods of analysis and management, and the ways to reduce investment risks on investment activities; Developing the scientific and practical suggestions and recommendations for improvement the investment activity in Uzbekistan.

"Investment" Finances Accounting Project financing Statistics Management Analysis of economic activity Relationship with other discipline

What is investment? According to the law of the Republic of Uzbekistan On Investment Activity dated , Investment is a tangible and intangible benefits and rights to have invested in objects of economic and other activities. Gazibekov D.G. writes that the content of investment is to obtain funds from accurate and reliable sources, their rational use, preservation of cost of capital and obtaining the planned benefits by taking into account the level of risk. Sharp W. in his book Investments gave the following definition: Investment is a rejection of some of the funds today in order to maximize profits in the future. American economists in the most general form, understand the investment as funding of fixed assets based on their future profitability, in particular, Campbell R. McConnell, Stanley L. Brue in their famous work Economics claim that Investments mean expenses for the construction of new plants, for machine tools and equipment with long service life, etc., it is determined by the expected rate of return and the interest rate. Investment is the material, financial and intellectual wealth, which invested by investors in various sectors of economy, in order to obtain certain benefits or social effects in the future.

Investment Under investment generally understood Under investment generally understood a tangible and intangible benefits and the right to have invested in objects of economic and other activities. investments and taking practical action to make a profit and (or) achieving another useful effect. Under investment activity generally understood

Investment Investment activity Investing Investment object Investment

Investing Getting a profit Holding period

Classification of investments in financial assets in non-financial assets in intangible assets in real assets

long-term strategic DirectlyIndirectly portfolio short-term Classification of investments

The structure of the investment Technological Reproductive Industrial structure By source of funding By type of property Territorial

Technological structure of real investment gives an idea of the composition of the cost of building and construction works, purchase of machinery, equipment, tools, for other capital expenditures. The reproductive structure of capital investments characterizes the distribution and the ratio of investment in forms of reproduction of fixed assets, shows the share of capital investments directed to the reconstruction of the operating companies, new construction, and modernization. Sectored structure refers to the distribution and the ratio of capital investment by industry and economy. It indicates the degree of balance and proportionality in the development of industries providing acceleration of scientific and technological progress in the country. Under the territorial structure of capital investments is understood their distribution and the ratio of investments by the territories, regions, areas of the country. All sources of investment financing divided into three main groups: Own sources of investment financing; Attracted; Borrowing. The structure of capital investment by ownership plays an important role, which means the distribution, and the ratio of capital investments in the context of ownership, i.e., state, municipal, own, mixed, foreign, etc.

The objects of investments Financial: - Shares - Currency - Deposits - Stock Real: -Fixed assets - Working capital - Innovation assets - Human capital - In other nonfinancial assets (collectibles, precious metals and stones)

Types of investors by directivities of activity Individual Concrete physical persons or juridical persons, realizing investments for development its main economic (operating) activity Institutional Only juridical persons - a financial go-betweens, accumulating financial sources of individual investors and realizing investment activity, specialized, as a rule, on operation with securities

The Types of investors by purpose of investments: Portfolio They invest only to achieve investment income, investing for profit. Strategic Their purpose is investing in order to obtain the right to manage enterprise, in accordance with own concept their strategic development plan

The Types of investors by their attitude to investment risk: - Conservative investor - avoid average and high risk investment even in spite of equitable compensating the growing risk level additional level investment income; - Moderately aggressive investor - agree to take over investment risk only if it will compensate additional level of the investment income; - Aggressive investor - prone to go on investment risk in that events even, when it is not enough compensate additional level of the investment income.

The Types investor by national attribute: - Domestic - Foreign

Classification of investors By the organizational and legislative form: Juridical persons (entities) Physical persons (individuals) Juridical persons union Union of juridical and physical persons under cooperation agreement State bodies and local government By the direction of main activity: Individual investor Institutional investor By the form of ownership: Private investor State investor Municipal investor By investors attitude to investment risk: Conservative investor Moderately aggressive investor Aggressive investor By the purpose of investing: By national attribute: Strategic investor Portfolio investor Domestic investor Foreign investor

Following factors are impact on investment level: Temporal factor Inflation factor Risk factor (uncertainty)

At the level of overall economic At the micro level expansion of reproduction structural reforms in the country improve the competitiveness of domestic products solving social and economic problems promote and consolidate the company's position replacement of fixed assets increase the technical level of the company stabilize the financial condition enhanced competitiveness advanced training of personnel; improving methods of management The need for investments.

Topic questionsI know I want to know Learned The concept of "investment", "capital investments", their relationship and differences 2 Different interpretations of investment. 3 Classification of investments 4 The financial and real investment 5 Capital, social, innovative investments 6 Direct and portfolio investment 7 Domestic and foreign investment 8 Centralized and non-centralized investment 9 Factors of investment growth 10 The investment functions at the macro and micro levels of the economy 11 Investment and savings, their relationship The technique K / W / L Table K / W / L (I know / I want to know / Learned)

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