Capital is not only the book of the famous economist Karl Marx

This article does not claim to be a comprehensive consideration of the various types of investments by private or legal entities. It is a survey that helps to understand the basic: capital is what is used to generate profit and, accordingly, improve its material well-being.

Investing in the activities of an enterprise involves income. Someone prefers a small but relatively stable profit. Others are invested with the probability of returning their resources as soon as possible. Still others combine the two 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 money invested in the company by its shareholders, divided by its composition into the nominal value of shares and share premium. The nominal price includes 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, with a view to increasing the authorized (shareholder) capital.

Various options are used to pay for joint-stock forms of ownership, but the fact that capital is a security that is available to incoming participants, various property or other rights representing a monetary equivalent is mandatory. Evaluation of property funds intended for payment of shares is provided for by an agreement between all the founding shareholders.

It should be noted that financing a developing business is often problematic. This can help venture capital - it is an investment that contributes to covering the needs of the firm or company in financial resources and entering the next stages of development.

His appearance is well promoted by well-organized work on attracting outsiders, while retaining overall management of the company's activities and providing appropriate guarantees to ensure effective control of 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 event that the general course of development of a firm (company) does not meet the general requirements for ensuring a stable and sustainable growth of the company, it will be rather difficult to attract the appropriate capital. This can lead to stagnation, loss of control and bankruptcy.

Thus, the attraction of various investments among both direct shareholders and 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 multiply your well-being, use the available opportunities taking into account possible risks and negative circumstances. The capital invested is the aggregate resource of all participants, which is easy to lose and difficult to restore.