Mathmatical Model and Appication in Financial Investment

When the capitalism started to developing, the capital owner and the capital user are unified. The means of production and capital are owned directly by economy, and most common way to invest is the direct investment, which is direct invest capital, such as build factory, producing and circulation. Therefore, the concept of early investment is mainly means real investment. With the development of productivity and commodity economy of capitalism, the separation of capital possession and capital employed became and important form of how capital are used. And the reason is with the development of commodity economy, the capitalism scale keeps enlarging, and it’s more difficult for single capitalist to satisfy the need of enormous capital for the growing investment scale. And raise capital fund outside of capitalists themselves became quite necessary, as a result, the bank credit system obtain the rapid development, the stock economy emerges as the time required, the bank credit, issue shares and bonds became important resources of investment fund. Therefore, financial investment became an important part of modern investment concept. [1]At the same time, with the development and continuous improvement of modern financial market, the financial investment became more crucial at times, the concept of modern investment indicates financial investment. The financial investment product mainly including fund, shares, bonds, gold, foreign exchange, financial derivatives and warrant.BSc/BABusiness and Management Administrationv