Direct investments

Direct investments are investments in production or assets which allow the investor to supervise enterprise activity. As a rule, direct investments supply possession more than 50 % of voting shares of other company. Routinely direct investments represent investment of money for the purpose of acquisition of income from sharing in enterprise activity, and also assume sharing in operation of business.

According to the accepted international classification of foreign investments, investments in which result the investor receives a share in an authorised capital stock of the enterprise not less than 10 % concern direct investments. Share acquisition in the capital of the enterprise not less than this size gives the chance to participate directly in operation of business, in particular to have the representative in board of directors.

Direct investments allow to affect on the business which has received direct investments. Recently, in the world the tendency to increase in volume of direct investments is traced.

Direct investments are routinely carried out through funds of direct investments - the specialised companies having the obligations of "subscribers" to transfer in advance agreed sums of money in case of approval by fund of those or other bargains. Interest of the subscriber consists in profit taking after hours fund in 3-5 years after creation at the expense of sale of all proinvested companies to strategic investors or other funds.

Direct foreign investments are divided on proceeding, that is, the direct investments which have been carried out by subjects of the this country abroad, and entering, that is, the direct investments which have been carried out by foreign investors in the this country. The parity of entering and proceeding investments shows the international investment item of the country. For example, the data across the USA shows that this country is net-exporter direct investments, that is, the volume of the investments enclosed by the American companies abroad, exceeds volume of investments of the foreign companies in the USA.

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