The amount of resources is made for the production or reproduction of capital with the aim of winning, ie investments, are among the largest source of income and capital. But to enter they should know its main features and how to determine their performance in the short, medium and long term. Vocabulary related investments include an individual or a company could make are the minimum initial investment, given by the minimum amount of money an investor needs to provide for incorporation into a fund, minimum investment and subsequent, related to the minimum it must invest after its incorporation. There is also a notable difference between net investment and gross investment: while the gross investment is the total amount invested before depreciation, net investment is gross investment to that which already have granted. There are types of investors, financial corporations engaged in managing their investments partners or shareholders at the furniture and real estate: are investment companies.
But investors also considered to banks, fund managers authorized by law, insurance companies or financial entities and national reinsurance. Earnings Calculation The calculation of earnings is based essentially two factors: how much has been won and over what period. Conventionally, all amounts are expressed in relation to the annual deadline for having a uniform standard of comparison. Thus, if gains are 10% for a month, you could say they mean by 120% annually. It is easy to calculate, for example, winning at the time fixed: always give the investor the nominal annual fee and receive, then the expected gain is calculated according to the number of days that has left the money in the bank. Nor is it difficult to calculate the return on equity, since the gain is the difference between the purchase price minus the selling price. The profitability of the titles, private or public, is obtained by subtracting the purchase price minus sales, coupons and adding capital / interest were received during the time that it owned the securities. If the bond is held until maturity profitability will be the Internal Rate of Return for the same price for which it was purchased.