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On the systematic necessity of studying financial and investment processes

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Lamara Qoqiauri

Doctor of Economic Science, Professor, Leading Scientific Worker of the National Innovative Research Institute

Abstract

On the Systematic Necessity of Studying Financial-Investment Processes In this article, investment is presented as a primary fundamental economic-financial category. The nature and scale of investment are crucial for maintaining the vitality of all economic systems over an extended period. It also emphasizes the particular importance of the place and role of investments. Specifically, if the scale and intensity of investments lag behind the physical depreciation of fixed capital, the national economy will inevitably fall into a complete economic crisis. The paper also discusses new components of the modern financial-investment sector, derived from the fundamental principles of the "Financial Management" encyclopedic handbook by I. Brigham and M. Ehrhardt, specifically: the principles of forming (portfolios) of individual physical and legal entities in stock markets and (corporate finance).

  • Furthermore, the investment sector is presented as the foundation for the reproduction and development of the economic system; numerous investment institutions, physical and legal entities engaged primarily in brokerage and consulting activities related to securities are outlined in this field. In this article, investments are defined as real, financial, and intellectual contributions to investment projects; investments in human capital are also described separately.
  • By generalizing the author's definition of the concept of investments, the essential characteristics of investments are highlighted, as well as the subjects and objects of investment activities.
  • The work also includes the key characteristics that define the essence of investments and, most importantly, thoroughly conveys the levels and aspects of the financial-investment sector, specifically:
  • the concept of the financial-investment sector, its main forms, and the explanation of contradictory processes among them. Finally, the article presents several noteworthy new provisions regarding the systematic necessity of financial-investment processes.
Keywords: investment, economic system, investment process, financial and investment sphere, main characteristics of investments.

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The new Economist, No2, 2025, Vol. 20, Issue 2.

The New Economist 2, 2025
Published Date:

11/07/2025

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