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investment strategy to attract investment

It is believed that the investment strategy to attract investment company must:

- Have well developed and long-term plan for the future. Investors want to know that their contributions will bring further gains.

- Have a good reputation in the community. Investing in the shadow, an investor risk of losing their profit, so choose only those businesses that are credible.

- Engage in open, that is transparency. This requires the financial statements and work with the media.

- Much depends upon the internal policies in the country where the enterprise is located. For the contributions of investors choose the most stable countries.

However, in practice these conditions are necessary for portfolio investors. Investment may well be involved, and without these conditions, but investor confidence in their rights to dispose of capital and profits. Such confidence can guarantee not only the laws and transparency in accounting, but also a personal connection, such as government or parliament, obtaining the right of direct control over the situation at the enterprise through a controlling stake and the appointment of a director or controlled by private direct supervision. A significant factor in attracting investment is the ratio of profit and risk. Some investors are choosing lower risk and agree to a smaller profit. Some investors will choose the higher profitability of investments, in spite of heightened risks. Commodity companies do not have to choose: go to where there is a resource. In addition, to attract investment are sometimes created special conditions. An example of the creation of such special circumstances are special economic zones (SEZ). Set of conditions for the investor is sometimes called the “investment climate”. Read the bright idea about gold oz.

Investments are characterized by, among other things, two interrelated parameters: the risk and profitability (return). As a rule, the higher the investment risk, the higher should be their expected returns. To describe the relationship between risk and profit is often used model of CAPM.

The value of the investment risk indicates the probability of loss of investments and income from them. The value of the total, integral risk is composed of seven types of risk: the legislative, political, social, economic, financial, criminal, environmental. While the national average risk is taken as unity, and actual results may vary in regions.

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Ancient precursors of the mutual insurance

Ancient precursors of the mutual insurance meet in the Egyptian, Greek and Roman burial clubs (collegia tenuiorum), which provided with regular contributions for a decent burial for their members and the cult of the dead. Up to modern times continuing and development of mutual insurance, however, begin until the early Middle Ages in Northern Europe with those based on a mutual relationship of trust and the joint meeting of religious, political, economic and social purposes merging guilds and cooperatives, which are preferably of the Community risk-taking and assistance devoted to death, fire, livestock deaths, shipwreck and capture. In the 17th and 18 Century built on state initiative, the first public insurance companies. (Read more about California affordable health insurance).

Insurable risks are very diverse. Therefore, for example, risks that are based largely on the behavior of people as non-economic success of a company, market price risks, insurable or intentional conduct. Insurable risks but can be reduced to a few risk groups, but these have no precise boundaries:
-biometric risks, this refers to the life and livelihood of individuals risks such as disability, dependency, longevity and premature death. They are covered by life insurance products
-Cost risks (such as court costs, medical expenses) are covered by the law such as insurance and health insurance
-Damage risks (such as fire, accident or theft) will be covered by many insurance types (such as homeowners insurance, accident insurance, household insurance)
-Liability risks are covered by various forms of liability insurance (more about affordable health insurance plans)
The law separates the insurance law in the increasingly numerous border social security law, and private insurance law, which in turn includes insurance business law, insurance law and insurance contract law. The insurance contract law is a special debt contract law and as such the specific features of the insurance contract to meet the demands special private law.
The branches of social security funds are not really counting on the insurance, because it is only unfunded (PAYG) state-sponsored insurance. In addition to the statutory pension insurance contributions do not apportioned among the beneficiaries, but provided from one generation to the other (generational contract). It makes no provisions but is financed out of current income and demographic change is not so. Social Security will not be discussed further at this point. Get further information about health insurance for pre-existing conditions.

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