Investing: The Concept and Classification of Schemes with Legal Significance

Introduction: the theme of investment and investing invisibly but tangibly accompanies a person in modern life. The desire to increase their funds is becoming an urgent need of the population. It is carried out through doing business as well as increasing the personal income of citizens. Investment opportunities in the economy as a whole, in relevant markets, and in people’s behavior are expanding. There is an interest in training in this field, and in this regard, the importance of knowledge of the theoretical foundations of investment activity at the level of the main groups of investors and the mechanism of investment in various forms of its implementation increases. The purpose of the paper is to study issues related to the concept of “investment,” the relationship between the concepts of “investment” and “investing,” the legal structures of investment, features of legal forms of investment and their differences from other similar forms of capital investment, investment as a transaction and a type of entrepreneurship, as well as investment schemes and their classification. Methods: the paper uses both the general scientific and specific scientific methods of scientific cognition, among which there are: systematic, dialectical, structural and functional, etc. The methods of formal legal, comparative law and legal forecasting allow taking into account the specifics of the legal nature of the concepts under study, comparing homogeneous legal phenomena, and identifying prospects for the development of legal relations in dynamics. Results: the author considers the main economic and legislative concepts related to investment and investment activity. The features of investing in various market assets are identified and analyzed. The approaches to the analysis and management of the investment portfolio of stocks and bonds are being investigated. Two legal forms of investment have been studied: contractual investment and corporate investment. The author explores new and alternative forms of investment, the main economic and financial categories, factors determining the investment climate, ways to form a portfolio of stocks, bonds, and their management, derivative financial instruments, and explores classifications and investment schemes. Conclusions: it is concluded that an investment represents a certain amount of capital, and the process of their implementation is defined as investment activity (investing). It is proved that the legal structure of investment includes a wide range of rights, duties, and responsibilities of business entities, which includes, in addition to the norms of the civil legislation, the norms of various branches of law. It is revealed that the legal status of an investor is intermediate between a “business entity” and an ordinary “individual.” It is argued that in both legal forms of investment (contractual and corporate), the investor transfers the investment to the other party. In the case of a contractual investment, the investor transfers them to another party (the organizer), who uses them for the purpose specified in the contract (intended purpose). As for the corporate form, the investment is carried out, for example, in the authorized capital of a company, and the investor acquires the rights of a participant in this company. If contractual investment is based on the “classical norms” governing civil law contracts, then corporate investment has a number of features related to the regulation of corporate relations. Investment is classified into main groups, as well as long-term real investment, taking into account planning and accounting practices. From a practical standpoint and based on the current legislation, investment schemes are outlined.