International Investments: Experience and Prospects in Conditions of Georgian Economy

Lamara Kokiauri, Giorgi Kurtanidze

We can consider any market of securities from both the viewpoint of its separate segments (kinds and groups) and circulation of securities in each segment of the market. Depending on segments, investors may classify a market in different ways.

In division of a securities market, a most general way of classification of securities is the following: shares, bonds, derivative securities – futures and options, in which investments are possible either independently, or as part of a portfolio of securities of the main securities (shares and bonds). For a more detailed division of segments they distinguish shares of enterprises according to the brunches of the economy, bank shares, bonds, futures, and options.
From our point of view, the analysis of profitability of a international investments portfolio should be carried out both during the whole period from the moment of its formation and after certain periods of time (a day, a week, a month, a year). For the carried out purchase and sales operations, it is also necessary to assess their net profit taking into account the paid taxes and extra expenses.
Thus, for participation in international investments we find necessary the following:
knowledge of the international investment market, including the money-market, and mastering the methods for participation in it;
knowledge of characteristic features and indicators of the securities that are in circulation on both national and European markets;
knowledge of investment markets’ characteristic indicators, their essence and calculation methods;
ability to analyze the data on investment and financial markets given in press;
having an idea about the factors that influence the value of assets on the international markets and their interrelation;
knowledge of the instruments and methods of international investments’ risks decreasing;
knowledge of the rules of international investments portfolio’s profitability indicators and their calculation.