Private property in the economy.

Where there is economic activity, there is always a problem related to property. People constantly have questions: who is the owner of the factory, factory, land, real estate, spiritual wealth?

Private property in the economy is nothing more than a relationship between people, relating to the material basis of any economic activity or means of production. The one who is the owner of the material production factors (capital and land) is the manager of the effect to which the economic activity tends . Private property is now the basis of a market economy.

Private property is nothing more than the consolidation of the right to control lifebloods and economic resources for specific people, as well as their groups. Within the framework of this concept, objects such as land, capital, final goods, income and others become personalized, which means that they have a specific owner. Every citizen has the right to carry out with his property actions that do not contradict various legal acts and the law in general. A citizen may transfer the right to own, dispose and use his property to other people and remain the owner, alienate him to their property, give him a pledge and dispose of it by any other means. In addition, in general, every person has the right to have private property.

Private property is divided into one that includes the means of production of a person who works independently (it has artisans, peasants and other people who live by their own labor) and that is imposed on the material conditions of production of those people who use someone else's labor. The second type of private property is usually owned by people who own large farms and employ the labor of an impressive number of workers.

Private property has several forms:

1. Individual - family or sole property. Enterprises in this form of ownership are numerically dominant in a market economy. This form is presented in small business (small shops, gas stations, cafes, farms). It is divided into personal, which includes objects that do not bring any income (commodities) and private, to it are those objects that generate revenue (production factors).

2. Joint-stock - it is a question of group private property, it is created only through the issue and further sale of securities (bonds and shares). The action is a security that accurately indicates that a certain amount of money was contributed to the total capital of the JSC, it gives its owner the right to receive profit - dividends. In addition, he can participate in the distribution of all property balances, if the company is liquidated. A bond is a security that says that its owner has provided a loan to a joint stock company. She gives him the right to receive a fixed income and is subject to redemption at a specific time.

3. Cooperative and collective - it is about joint (common), shared ownership. It assumes that the assignment has a collective-group nature, as well as sharing, ownership and disposal of the results and factors of production.

Private property has both disadvantages and advantages. Its characteristic features are spontaneous development, high efficiency. Such property stimulates enterprise, initiative, responsibility in relation to work. However, she also has negative features - exploitation, the desire for profit, spontaneity.