Investment refers to the process that countries, enterprises and individuals sign agreements with each other for the specific purpose of promoting social development, realizing mutual benefit and transferring funds. It is also an economic behavior that a specific economic entity invests a sufficient amount of funds or physical currency equivalents in a certain field in a certain period of time in order to obtain income or capital appreciation in the foreseeable future.
Financing is the behavior and process of raising funds for enterprises. It is the financing of monetary funds, and it is the behavior of the parties to raise or lend funds in the financial market in various ways. "New palgrave Dictionary of Economics" explains financing: financing refers to the monetary transaction means to pay for purchases that exceed cash, or the monetary means to raise funds for the acquisition of assets.
2. Different characteristics
In most cases, financial intermediary is not a one-to-one intermediary between a certain fund supplier and a certain fund demander; But on the one hand, facing the comprehensive intermediary of fund suppliers, on the other hand, we can see that financial institutions have the status and role of financing center in indirect financing.
Investment is another asset, in exchange for the transfer of other assets; Investment is an asset held by an enterprise outside the production and operation process; Investment is an asset in the form of rights; Investment is an asset with financial risks. The investment cycle is very long, usually 5- 10 years, and not too long is called speculation.
3. Different functions
Investment is closely related to economic growth. In the economic theory circle, both the West and China have similar views, that is, economic growth is mainly determined by investment, and investment is the basic driving force and necessary premise of economic growth. The influence of investment on economic growth can be analyzed from two aspects: factor input and resource allocation.
Through listing, the capital of financing enterprises can enhance the liquidity of capital, and at the same time, it can "close" the future value of enterprises to the present stage, thus increasing the value of original capital with close liquidity; Joint-stock system can be integrated into business reputation and brand value; Some people take advantage of the restructuring of state-owned enterprises.
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