Direct investments

Direct investments

Direct investment means investing (investing) cash into material production and marketing to participate in the management of an enterprise or company in which money is invested and to receive income from participation in their activities (direct investments ensure the possession of a controlling interest).

In accordance with the accepted international classification of foreign investments, direct investments include investments, as a result of which the investor receives a stake in the authorized capital of the enterprise no less than 10 %. Acquisition of a stake in the companys capital of no less than this amount makes it possible to directly participate in the management of the enterprise, in particular, to have a representative on the board of directors.

Direct investments allow directly to influence the invested business. In the modern world, there is a tendency to increase the volume of direct investment and reduce portfolio.