SEO Software: Trying To Catch The Spiders…

SEO software does what exactly?SEO software frequently starts from the following assumption:- look at the page that ranks number 1 in Google,- do exactly the same + a bit better,- and you will be number 1SEO software will then examine “all” the SEO parameters that it finds out about the number 1 site in Google. Then this SE software will automate the process in mimicking this for your site.SEO is more than a software-approach!SEO is the art of ranking number 1 in any search engine for any keyword.Spiders rank a web site number one because spiders “think” that this site deserves to be number one. Of course the spider cannot think: there needs to be a programmer who programs the spider to find out which site is best.Now if you are smart enough to feed the spider exactly what the programmer thinks is important, you will have the knowledge to rank number 1.This is exactly what SEO software does: it claims to know and tackle “all” the parameters that make a web site ranking number 1.Pitfalls of a software-approach to SEOSuppose you find all the parameters needed to rank a web site number 1. You manage to get all this parameters onto your site and you even manage to be rank number 1.Now if your site is really deserving to be ranked number 1, all is fine. But if surfers start complaining that you are not, the search engine will be blamed!It won’t take long until Google finds out that “somebody broke the code” of the spiders. The spiders will be updated to give quality results to the visitors!This means you need to get an upgrade of your SEO software approach… : you are running after the facts in stead of above the facts.How to be ranked number 1?You rank number 1 because you deserve it.In spider logic this still means:- your page talks about the keyword you are optimizing for- you page has lots of incoming links about the keyword you are optimizing for.This is what ranking number 1 should be about.But my SEO software is really up to date, or is it not?Your software can only be up to date AFTER the spiders’ software is updated. Unless you write the spiders yourself, you will always be a bit later.You cannot know all the parameters the spider takes into account, unless again you are writing the spider software yourself.Some of the parameters you cannot influence: age of the web site is one of them. Suppose the spider needs to choose between 2 websites: the oldest one and the SEO mimic: which one to choose? The oldest one would be the easiest bet, and you cannot change the age of your web site can you?A close look at SEO softwareSEO software advertisements could say that you can get a top 5 Google Ranking in under 30 Days… If that is true, then check out to see:- is the web site of this SEO software ranking number 1 in Google for SEO or SEO software?- are the example web sites the SEO software mentions to be ranked number 1, really number 1: number 1 in Google that is?It’s very easy to type in the keyword phrase of the SEO software example web site and see if they are number 1 or not.And don’t be fooled by SEO software that gives numerous examples of number 1 rankings in MSN or Yahoo: if you want to have a long lasting number 1 ranking in any of the search engines, you better start having a number 1 ranking in Google.I didn’t say that it is a guarantee to rank number 1 in Yahoo and MSN once you rank number 1 in Google, but you will surely be high up there as well. On the other hand, a number 1 ranking in MSN can mean that you are no where to be found in Yahoo nor Google.So you say: well, then I just try to rank number 1 in MSN since it seems to be easier. Well, it is easier, but then it is easier for your competition as well, so it won’t take then too much effort to out-play you again. Therefor do the job good once and for all: thrive to be number 1 in Google and then fine-tune if needed for MSN or Yahoo.Why do you do SEO in the first place?SEO is 1 of the ways to get more traffic to your web site. But there is more in getting a lot of traffic to your site, than “blindly ranking 1 in Google”:— Always make sure you rank number 1 for a word a lot of people are looking for! —If you buy any SEO software or out-source your SEO to the SEO specialists: always check their SEO examples:- are they ranking number 1- are the keywords they rank for popular search keywords (bigger than 10.000 searches a month in the Keyword Selector Tool from Yahoo’s search-marketing is considered not too low)- how long did it take them to be number 1- how big is the competition for the keyword-phrase (smaller or bigger than 5 million? As a general rule : above 5 million keyword-phrase results in Google, things become though)- how big is the competition for the quoted “keyword-phrase” (smaller or bigger than 33.000? As a general rule : above 33.000 quoted “keyword-phrase” results in Google, things become though)If for all these items the SEO software or SEO specialist can answer YES, then you can start taking them very seriously!Try it out for each example web site any SEO software claims to have ranked number 1 for a certain keyword-phrase. And of course, always start with checking if they are ranking number 1 in the first place! If they are not, then you are going to buy SEO software that doesn’t do the job! Ranking number 2 is ALMOST number 1, and even worse, ranking number 9 is nowhere near to ranking number 1.SEO software web sitesWhenever you are interested in something to buy on the Internet, check out the overall web site of the product you want to buy!Some SEO software web sites are 1 page web sites: just 1 page with the product, no links, no extra pages…Again back to basics. What was the first idea to set up the Internet? To give people information, lots of information.And we are talking about a “NET” in Inter”NET”: “net” means links here, links there, links everywhere… (that’s why links are so important in SEO)If you don’t see lots of links nor lots of content on a web site about SEO, then the SEO web site is not serious about its own subject: SEO!Back to Basics: web-trafficYour purpose is getting as much people to your site as possible, isn’t it?SEO software has the purpose of ranking 1 in Google.Now it is very easy to rank 1 in Google for the keyword-phrase “jhdkghgkbdcds”,
but who is looking for “jhdkghgkbdcds”??? Nobody!So if nobody looks for “jhdkghgkbdcds”, then why bother to rank number 1 with it?What is a nice number when it comes to “popular keyword searches”? If you use the Overture Keyword tool, anything above 10.000 searches a month means quite popular, but: also know that above 10.000 “the big boys’ are competing
with you, below 1.000 you have the field for yourself. So a good SEO advice is work yourself from the bottom up: start with keywords that are not so popular, and once you are ranked high for those, then tackle the next more popular keyword on the list.SEO software ConclusionSEO is the art to feed the spiders what they like.
SEO software is running after the spiders trying to catch their attention.Always check the numbers and the facts about any SEO software and (this) SEO article!Then make a decision yourself. If you see that the SEO software- is ranking well for it’s own product- is ranking web sites for popular keyword well,only then you can consider buying it.

How Do I Get Visitors to My Site? (The Truth About SEO)

Think of your site as a physical location. How would you get people to come and see you? Direct mail, newspapers, magazines, radio, TV, word of mouth, flyers, business cards, T-shirts, packaging, FaceBook, Twitter, email campaigns, banner ads on websites – traditional advertising works for websites too.Then there are those methods you can only use for websites: click through advertising and search engine optimization (SEO). Click through advertising costs either by the ad, like traditional advertising, or by the click – each time someone clicks on your ad to get to your site, you pay. As with other advertising channels, the more people who are known to view the page where your ad resides, the more you pay. Ads can appear on various web sites, or at the top of search engine pages. The most popular pay per click app is Google AdWords. Click through advertising may be a good option for you.This article will focus on the other online only method: Search Engine Optimization (SEO). SEO is all about getting your site to the top of the list when someone does a search in Google, Bing/Yahoo or another search engine.Watch out for Snake OilMany claim that search engine optimization (getting your site to the top of that list) is science or magic or some other sort of mystery that only a few very special people have the brains to understand. – NOT TRUE! Effective search engine optimization is a lot of work. And it does take some technical knowledge. But the basics are just that – basic.The purpose of this article is to demystify SEO so that you can select an honest SEO firm. Or if you have a bit of tech savvy you can see that it’s not impossible for you to do on your own. And even for those of you who love to browse, but aren’t so comfortable with the technical details, there is a lot of the SEO job that you are more qualified to do (or at least supervise) than any SEO firm.How much SEO do you need? Is your site for your school and everybody who will ever want to find it on Google already knows it exists and will look it up by typing in “Peoria Middle School”? Then you need just the tiniest bit of SEO.Is your site for your family car dealership and the tri-state area sees Uncle Joe on TV every spring hopping up and down in a bunny suit inviting “y’all” to “come on down to the Kalamazoo Kia Kangaroo Sale”? Yours is not the only car dealer in town and when people search for car dealers they will probably type in something like “Kalamazoo cars” rather than “Kalamazoo Kia”, although if they really like Uncle Joe’s bunny suit, well you never can tell. This situation calls for a little SEO.Is your business is entirely online? Say you sell remanufactured camera parts that you refurbish in your garage nights and weekends. Then pull out all the stops. You need lots of SEO.Put Yourself in Google’s ShoesLook at SEO from the perspective of the search engines. What’s their objective? The same as yours: lots of visitors. How do they attract all these visitors? They put the most useful sites at the top of the search results list. How do they decide which sites are most useful? They look for the most popular ones.That’s right. SEO is not rocket science. It’s a popularity contest.So then, how do you make your site more popular? First let’s define popularity in search terms – links from other sites to your site. Think high school. Popularity equals friends. So you want lots of friends, and not just any friends, you want popular friends. But well, when push comes to shove, not so popular friends are better than no friends at all. Translation – friends equals links and you want lots of links, but not just any links. You want links from sites that have lots of other sites linking to them. And those sites should have lots of sites linking to them and so on and so on and so on. A link from CNN.com is going to get you a lot more popularity points than a link from your local newspaper website. But then a hundred links from so-so sites might be better than one link from CNN. It’s hard to tell.And that’s where the mystery/science SEO legend takes hold. The search engines are not going to tell you exactly how they rank pages. If they gave away all their secrets the cheaters would fake everything necessary to get to the top of the list.There is a subculture of SEO gurus who spend their entire lives trying to unravel the precise algorithms the major search engines use to rank pages. And then they figure out how to use that information to their advantage. It’s a trial and error process. Eventually they get sites to rank high. Then the major search engines catch on and tweak things a bit so the SEO gurus have to start over again. It’s a never ending game of tug of war.Not all these gurus are bad guys. Most are honest business people working to get the edge on the competition. But how much careful tweaking does your site really need? And how much money do you want to spend? It’s one of those diminishing returns things. Up to a point spending more time and money will yield a greater and greater ranking, and then, boom, a huge amount more will yield almost nothing.Is there anything to SEO besides links?Yes. KEYWORDS. These are the words and phrases that are typed into the search bar. In order for the search engines to find your site these keywords must be coded into almost every page on your site.The nitty grittyI am going to show you:
How to pick keywords and
Where to find sites willing to link to yours.
That’s it. That’s the gist of the whole SEO thing. No big mystery.KeywordsThese are the words (and/or phrases) that people type in the search bar when they are looking for sites like yours. They also tell the search engines that your site exists and what it is all about.You need to pick words that people will use to find your site, but that will yield few enough results that you are more likely to appear near the top of the list.Let’s use the example of Kalamazoo KIA. You don’t want to use “car” for a keyword. I tried that and Google gave me 4.9 billion results. What’s the likelihood that Kalamazoo Kia is going to be anywhere near the top of that list? Zero. Kia” would be better, but still too broad. “Kalamazoo cars”, “kalamazoo kia”, “michigan kia”, “kalamazoo new cars”, these would all yield a smaller pool of results. So how many keywords do you need? 10 or 15 is good. Too many gets us to that diminishing returns thing again. So I’ve thought up four words on my own and now my imagination has run out. What other words might potential Kalamazoo Kia customers type in? I can’t read minds, but I can find out. There is this cool tool, Google AdWords, and it is free. Once you register you can type in various keywords, “Kalamazoo Kia” for instance, and find out what related searches people have used and how popular those search terms are. Da! Da! – more useful key words. I found “kalamazoo kia dealerships”. After doing a Google search for “kalamazoo kia” I found out why it was necessary to add the “dealerships”. Kalamazoo has “kia’s” that are not even cars. Who’d a thunk?So you’ve got your key words. What do you do with them? Use them in your url (site name – http://www.mykeywords.com ), have your web designer add them to the title and description tags on your web pages, and use them liberally, but not too liberally throughout your site copy.Now that you have your keywords entered on your site pages, the search engines can categorize you by these keywords. Next you want to make sure that people searching for your category find you and not your competition.LinksYou want to be popular. You have got to get links. It’s time to pound the cyber pavement. SEO professionals can do this work for you but if you’re on a budget you can do most of the work yourself.Get listed in industry directories. If you are selling necklaces you could search for “jewelry directory”.Pursue reciprocal links. Look for sites that may be willing to link to your site, so long as you link to theirs. Continuing with the necklace example you would search for “jewelry add url”.If you have a physical location, get your site listed on local directory/yellow page type sites.Participate in industry forums, and if the forum allows, work a link to your site into your advice.If there are any events associated with your site, list them on online community calendars.Get an article, listing or mention about your site on the sites of any industry associations you belong to.Write a press release and submit it to free press release sites like freepressrelease.com.Try to get the sites that link to yours to use your keywords in their link.BAD – Click here to find out about refurbished camera parts.GOOD – Click here to find out about refurbished camera parts.Don’t hide from the search enginesDO have your web designer generate sitemap.xml and robots.txt files add them to your site. The search engines look for these files when they are trolling the internet for sites.Do NOT expect the search engines to find your keywords in the sections of your site that use: keyword links in images or javascript, frames/iframes, Flash or dynamic pages.Don’t make the search engines madPlaying dirty tricks, in an attempt to make your site appear popular, can get you blacklisted. Yep, the Search engines will turn their heads and pretend you don’t exist. You will not appear anywhere in the listings. If this happens you can appeal but your chances are not good. Your best hope if you are blacklisted is to start over with a brand new site.So what are these dirty tricks? Some are simple, and some are complicated, but make sure your SEO firm doesn’t do any of them. They include repeating your keywords multiple times, keyword stuffing (hiding keywords by making the text the same color as the background), using keywords that don’t relate to your site’s content, automated programs that generate fake links just to make you look popular, robots that create zillions of pages for your site that are really just copies of your existing pages with a few changes here and there, to make you look important and popular. There are many others, but generally speaking, anything that attempts to make you look more popular than you really are is bad.Putting SEO to workLet’s go back to our 3 examples from the beginning of this article. How do we apply SEO to each one?Peoria Middle School – a few keywords – “peoria school” “peoria middle school” and for those who can’t seem to get it right “peoria intermediate school” should do it. That way people who look you up on Google rather than by typing in your url http://www.peoriamiddleschool.com will be able to find you.Kalamazoo Kia- most of your potential customers already know who you are. They’re “either looking for a new car or a new KIA car. They’re looking for deals, pictures of the latest models, or they want your phone number or customer service hours. There aren’t too many car dealers in town so you are popular among car dealers by default – not too much need to worry about links. You’ll need your keywords. Then you can list with the “local directory” sites and the car dealer and KIA directories. Are you participating in this year’s food drive? Make an announcement on your local online community calendars. A couple of popularity points won’t kill you but you don’t have to work too hard.Cal’s Re-engineered camera parts – you are a needle in a haystack. You need all the help you can get. You’ll need keywords of course. And a comprehensive linking campaign. You might not have much money to spend on an SEO firm so you must work like the tortoise: slow and steady. Do a few press releases, check out all the industry sites and camera buff sites and organizations. Respond on forums – become an expert. Find some reciprocal links. Get listed in directories. Do a little bit everyday. Eventually you will become known to those who are looking for refurbished camera parts.Who can help me get the job done?Help! You said SEO wasn’t rocket science. This is getting complicated. I can’t do this all on my own – who will help?Well it’s not rocket science and it’s not magic; neither is styling hair, but you won’t find me anywhere near anyone’s head with a pair of scissors. SEO does require specialized knowledge. If you have that knowledge, great, you can do this on your own if you choose, but for those who don’t the purpose of this article to get you to understand the basics, show you which parts you can do on your own (I can’t cut my own hair, but I do wash and brush it every day), and to help you find an honest vendor for the rest.SEO firm – as long as they have access to the back end of your site they can do it all for you. Refer to this article and ask questions. Make sure the firm is above board.Web designer – Your web designer should be able to put your keywords into your pages and create and upload your sitemap.xml and robots.txt files. Beyond that their ability and willingness to help with SEO will vary greatly. You may prefer a web designer who specializes or one that does it all.What you can do on your own if you choose – you know your business/project better than your web designer or SEO firm. You are in a better position than they are to figure out your keywords and to determine which sites you want to link back to yours. You can also do a lot of the leg work if you choose – contacting sites and asking for links, writing press releases, making announcements on community calendars, participating in forum discussions, etc.If you do all of the above, tailored to your specific situation of course, you will be ahead of the SEO game. Use common sense. Spend the time and money you need, but don’t go overboard and reach the point of diminishing returns. And remember, SEO takes time to yield results.

Finance, Credit, Investments – Economical Categories

Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled.

The definition of totality of the economical relations formed in the process of formation, distribution and usage of finances, as money sources is widely spread. For example, in “the general theory of finances” there are two definitions of finances:

1) “…Finances reflect economical relations, formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relatively to the conditions of Capitalism, when cash-commodity relations gain universal character;

2) “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.

First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value.

This latest first appears to be a part of value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind in the consistence of the ready products cost price.

Second, main goal of finances is much wider then “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufactures and branches’ level too, and in such conditions, when the most part of the manufactures are not state.

V. M. Rodionova has a different position about this subject: “real formation of the financial resources begins on the stage of distribution, when the value is realized and concrete economical forms of the realized value are separated from the consistence of the profit”. V. M. Rodionova makes an accent of finances, as distributing relations, when D. S. Moliakov underlines industrial foundation of finances. Though both of them give quite substantiate discussion of finances, as a system of formation, distribution and usage of the funds of money sources, that comes out of the following definition of the finances: “financial cash relations, which forms in the process of distribution and redistribution of the partial value of the national wealth and total social product, is related with the subjects of the economy and formation and usage of the state cash incomes and savings in the widened further production, in the material stimulation of the workers for satisfaction of the society social and other requests”.

In the manuals of the political economy we meet with the following definitions of finances:
“Finances of the socialistic state represent economical (cash) relations, with the help of which, in the way of planned distribution of the incomes and savings the funds of money sources of the state and socialistic manufactures are formed for guaranteeing the growth of the production, rising the material and cultural level of the people and for satisfying other general society requests”.
“The system of creation and usage of necessary funds of cash resources for guarantying socialistic widened further production represent exactly the finances of the socialistic society. And the totality of economical relations arisen between state, manufactures and organizations, branches, regions and separate citizen according to the movement of cash funds make financial relations”.
As we’ve seen, definitions of finances made by financiers and political economists do not differ greatly.
In every discussed position there are:

1) expression of essence and phenomenon in the definition of finances;

2) the definition of finances, as the system of the creation and usage of funds of cash sources on the level of phenomenon.

3) Distribution of finances as social product and the value of national income, definition of the distributions planned character, main goals of the economy and economical relations, for servicing of which it is used.

If refuse the preposition “socialistic” in the definition of finances, we may say, that it still keeps actuality. We meet with such traditional definitions of finances, without an adjective “socialistic”, in the modern economical literature. We may give such an elucidation: “finances represent cash resources of production and usage, also cash relations appeared in the process of distributing values of formed economical product and national wealth for formation and further production of the cash incomes and savings of the economical subjects and state, rewarding of the workers and satisfaction of the social requests”. in this elucidation of finances like D. S. Moliakov and V. M. Rodionov’s definitions, following the traditional inheritance, we meet with the widening of the financial foundation. They concern “distribution and redistribution of the value of created economical product, also the partial distribution of the value of national wealth”. This latest is very actual, relatively to the process of privatization and the transition to privacy and is periodically used in practice in different countries, for example, Great Britain and France.

“Finances – are cash sources, financial resources, their creation and movement, distribution and redistribution, usage, also economical relations, which are conditioned by intercalculations between the economical subjects, movement of cash sources, money circulation and usage”.
“Finances are the system of economical relations, which are connected with firm creation, distribution and usage of financial resources”.

We meet with absolutely innovational definitions of finances in Z. Body and R. Merton’s basis manuals. “Finance – it is the science about how the people lead spending `the deficit cash resources and incomes in the definite period of time. The financial decisions are characterized by the expenses and incomes which are 1) separated in time, and 2) as a rule, it is impossible to take them into account beforehand neither by those who get decisions nor any other person” . “Financial theory consists of numbers of the conceptions… which learns systematically the subjects of distribution of the cash resources relatively to the time factor; it also considers quantitative models, with the help of which the estimation, putting into practice and realization of the alternative variants of every financial decisions take place” .

These basic conceptions and quantitative models are used at every level of getting financial decisions, but in the latest definition of finances, we meet with the following doctrine of the financial foundation: main function of the finances is in the satisfaction of the people’s requests; the subjects of economical activities of any kind (firms, also state organs of every level) are directed towards fulfilling this basic function.

For the goals of our monograph, it is important to compare well-known definitions about finances, credit and investment, to decide how and how much it is possible to integrate the finances, investments and credit into the one total part.

Some researcher thing that credit is the consisting part of finances, if it is discussed from the position of essence and category. The other, more numerous group proves, that an economical category of credit exists parallel to the economical category of finances, by which it underlines impossibility of the credit’s existence in the consistence of finances.

N. K. Kuchukova underlined the independence of the category of credit and notes that it is only its “characteristic feature the turned movement of the value, which is not related with transmission of the loan opportunities together with the owners’ rights”.

N. D. Barkovski replies that functioning of money created an economical basis for apportioning finances and credit as an independent category and gave rise to the credit and financial relations. He noticed the Gnoseological roots of science in money and credit, as the science about finances has business with the research of such economical relations, which lean upon cash flow and credit.
Let’s discuss the most spread definitions of credit. in the modern publications credit appeared to be “luckier”, then finances. For example, we meet with the following definition of credit in the finance-economical dictionary: “credit is the loan in the form of cash and commodity with the conditions of returning, usually, by paying percent. Credit represents a form of movement of the loan capital and expresses economical relations between the creditor and borrower”.

This is the traditional definition of credit. In the earlier dictionary of the economy we read: “credit is the system of economical relations, which is formed while the transmission of cash and material means into the temporal usage, as a rule under the conditions of returning and paying percent”.
In the manual of the political economy published under reduction of V. A. Medvedev the following definition is given: “credit, as an economical category, expresses the created relations between the society, labour collective and workers during formation and usage of the loan funds, under the terms of paying present and returning, during transmission of sources for the temporal usage and accumulation”.

Credit is discussed in the following way in the earlier education-methodological manuals of political economy: “credit is the system of money relations, which is created in the process of using and mobilization of temporarily free cash means of the state budget, unions, manufactures, organizations and population. Credit has an objective character. It is used for providing widened further production of the state and other needs. Credit differs from finances by the returning character, while financing of manufactures and organizations by the state is fulfilled without this condition”.

We meet with the following definition if “the course of economy”: “credit is an economical category, which represents relations, while the separate industrial organizations or persons transmit money means to each-other for temporal usage under the conditions of returning. Creation of credit is conditioned by a historical process of fulfilling the economical and money relations, the form of which is the money relation”.

Following scientists give slightly different definitions of credit:
“Credit – is a loan in the form of money or commodity, which is given to the borrower by a creditor under the conditions of returning and paying the percentage rate by the borrower”.
Credit is giving the temporally free money sources or commodity as a debt for the defined terms by the price of fixed percentage. Thus, a credit is the loan in the form of money or commodity. In the process of this loan’s movement, a definite relations are formed between a creditor (the loan is given by a juridical of physical person, who gives certain cash as a debt) and the debtor.
Combining every definition named above, we come to an idea, that credit is giving money capital of commodity as a debt, for certain terms and material provision under the price of firm percentage rate. It expresses definite economical relations between the participants of the process of capital formation. Necessity of the credit relations is conditioned, from one side, by gathering solid quantity of temporarily free money sources, and from the second side, existence of requests of them.

Though, at the same time we must distinguish two resembling concepts: loan and credit. Loan is characterized by:

o Here, the discussion may touch upon transmission of money and also things form one side (loaner) to another (borrower): a)under the owning of the borrower and, at the same time, b) under the conditions of returning same amount or same quantity and quality of the things;

o The loaning of money may bear no interest;

o Any person may take part in it.
With the difference with loan, credit, which is somehow a private occasion of the loan, represents:

o One side (loaner) gives to the second one (borrower) only money, and _ for temporal usage;

o It may not bear no interest (if the assignment doesn’t foresee something);

o In it creditor is not any person, but a credit organization (at the first place, banks).
So, a credit is the bank credit. To our mind, it is not correct to use “credit” and “loan” as the synonyms.
Banking crediting is the union of relations between bank (as a creditor) and its borrower. These relations touch upon:

a) Giving a certain amount of money to the borrower for definite purpose (though, we meet with the so-called free credits, aims and objects of crediting are not appointed in the assignment);

b) Its opportune returning;

c) Getting percentage rate from the borrower for using the sources under his/her disposal.
The essential foundation of the credit essence and its important element is existence of trust between the two sides (in Latin “credo”, from which comes the word “credit”, means “trust”).
From the position of circulation of money forms (in the abstraction, historical process of formation economical relations and social budget and banking systems expressed by them) comparing different definitions of finances and credit, the paradox conclusion appears: credit is the private occasion of finances. And truly, from the position of movement of the money forms, finances represent the process of formation and usage of the funds of cash means. Very often such movements are fulfilled without returning, but sometimes, it is possible to give loans from the budget for the investment projects of other needs. Also, when a manufacture or corporations use their cash funds and we mean the finances of industrial subject, such usage may be realized as inside the manufacture or corporation (there is no subject about returning or not returning of the usage), so gratis under conditions of returning. This latest is called commercial form because of transmitting the sources to others, but even in this occasion, it is the element of financial system of the manufacture and corporation.

From the point of cash means movement, main character of credit is the process of formation and usage of the funds of cash means under the conditions of returning and, as a rule, taking the value-percentage. If gating the credit value doesn’t take place (even in the exceptional occasions), according to the movement form, credit becomes a private occasion of finances, as from the net financial funds (consequently from the state budget) the loans which bear no interests may be used. If gating credit value takes place, by the appearance form, credit is discussed to be financial modification.

From the historical point of view, finances (especially in the sort of the state budget) and credit (beginning with usury, later commercial and banking) were developing differently for considering credit to be the part of finances. Though, from the genetic-historical point of view, previous loaners, before giving loan, needed gathering the permanent capital not returning, that is the net financial foundation. The banks analogously needed concentration of the important own capital for influxing the consumers’ means and for getting higher percentage rate under the conditions of returning. Herewith, exactly on the financial basis, in the sort of financial fund (which later partially becomes loan fund) part of the bank capital appears to be the reservation (insurance) part of the fund, which by nature is financial and not loan. So notwithstanding the essential distinctions between finances and credit form the genetic-historical point of view, credit appears to be formed from finances and represent their modification.

From the essential position of expressing economical relations of finances and credit, we meet with cardinal distinctions between these two categories. Which mostly expressed by the distinction of the movement forms notwithstanding they are returnable or not. Finances express relations in the aspects of distribution and redistribution of social product and part of the national wealth. Credit expresses distribution of the appropriate value only in the section of percentage given for loan, while according to the loan itself, a only a temporal distribution of money sources takes place.
Herewith, there is a lot of common between the finances and credit as from the essential point of view, so according to the form of movement. At the same time, there is a significant distinction between finances and credit as in the essence, so in the form too. According to this, there must be a kind of generally economical category, which will consider finances and credit as a total unity, and in the bounds of this category itself, the separation of the specific essence of the finances and credit would take place.

Funding of the cash means is common to the researched economical categories. It takes place in any separate system of finances and credit, which have been touched upon during the analyses of defining finances and credit. Word combination “funding of the cash sources (fund formation)” reflects and defines exactly essence and form of economical category of more general character, those of finances and credit categories. Though in the in economical texts and practice, it is very uncomfortable to use a termini, which consists of three words. Also, “unloading” with an information hardens greatly its influxing into the circulation even in the conditions of its strict substantiation and thoroughness.
In the discussing context we consider:

1) wide and narrow understanding of economical category of the finances;

2) discussing finances in narrow understanding under general traditional meaning;

3) discussing finances, as funding of the cash means, in wide understanding, which concerns finances – in narrow meaning and credit – in complete meaning.
Termini “funding” and its equivalent “fund formation” are used by us as the purposeful structuring of cash means, which is based on two poles – accumulation of money sources (gathering) and its usage for definite purpose in the way of financing and crediting.
We have established a new termini – “finance-investment sphere” (FIS). Analyses about interrelation of finances and credit made by us give us an opportunity of proving, that in the given termini, the word “financial” is used with the meaning of funding cash sources, its purposeful structuring. In this process we consider at the same time financial, credit and investments’ economical categories.

Let’s sum up middle results of discussing new concept – “finance-investment sphere” and discuss its investment consisting parts.

The concept “investments” was brought into the native economical science from the West. In the Soviet economical science they for a long time used in the place “investments” the termini “capital placement”, which expressed the usage of the industrial factors in the sphere of real industrial activities during realization of capital projects. From one glance, this termini in its concept is identical to the “investments”, consequently it is possible to use them as synonyms. Though the termini “investments” and “investing” have the advantage towards the termini “capital placement” from linguistic and philological points of view, because they are expressed with one word. This is not only economical and comfortable in the process of working with the termini “investment” itself, but also it gives an opportunity of termini formation. More concretely: “investment process”, “investment domain”, “finance-investment sphere” – all these termini are much more acceptable.
Changing native economical termini with foreign ones is purposeful, if it really matters (by keeping parallel usage of the native termini for the inheritance). Though we must not change native economical termini into foreign ones all together, when by ordinal traditional language easy to explain private and narrow concrete processes and elements get their own termini. The “movement” of these termini is approved in the narrow professional bounds, but their “spitting out” into the economical science may turn economical language into the tangled slang.

Let’s discuss termini – “investment” and “capital placement’s” usage in the economical literature.
Investments are placement of funds into the main and circulation capital for the purpose of getting profit. “Investments in material assets – are the placements of funds into the mobile and real estate (land, buildings, furniture and so on). Investments in financial assets are the placements of funds into the securities bank accounts and other financial instruments”.

We don’t meet with the termini “investments” in the earlier economical dictionary, but we meet the combined termini “investment policy” – the union of the industrial decisions, which guarantee main directions of the capital investments, the activities of their concentration in the determinant suburbs, on which the reaching of planned rates of development of the society production is depended, balancing and effectiveness, getting more and more production and profit of the national income for every lost Ruble”. For today, in the most actual definitions, the capital investments are bounded only by financial means, when not only financial, but also the investment of natural, material-technical and informational resources takes place. Labour resources take an actual place in the investment process. They themselves fulfill this or that investment process.

A positive side of the discussed definitions is that they connect investment policy and capital placements (investments):

- economical development according to the key directions to the concentration;

- providing high rates of economical growth;

- raising an economical effectiveness, which is expressed:

a) by growing the throw off of the production and national income for every lost Ruble;

b) by fulfilling the branch structure of the investments;

c) by improving their technological structure;

d) by optimization of their further production structure.

Compared with such definition of the investments (capital placement) the definition of investments in the dictionary attaching the “Economics” seems to be unimproved: “investments – the expenses of gathering production and industrial means and increasing material reserve”. In this definition current expenses (production expenses) are mixed with the investment (capital) expense. Also, not the investment expenses but (though the investments are followed by the appropriate expenses) exactly advancing. It differs from the expenses by that the means (means) are put by returning the advanced values, also, under the conditions of growth, to which the concept-advanced capital is corresponding. the advancing may be realized in the money, natural-material and informational forms.

Except the termini “investments”, there are two more termini related with the investment. They are shown below.

“Human capital investment” – any activity provided for rising the workers labour productivity (in the way of growing their qualification and developing their abilities); at the expenses of improving the workers’ education, health and raising the mobility of the working forces”. It is very useful to use the mentioned termini, though it needs one correction: the human capital investments do not concern only workers, but also the servants, representatives of every kind of labour.
“Investment commodity, capital goods – a capital.”

In the official manuals of political economy of the reformation time the capital investments are discussed as “expenses for creating new main funds and widening, reconstruction and renewing the active ones”. In this definition the investments (capital placements) during separation of the forms (types) of further production of the main funds are bounded only by main funds (without increases of the circulation funds and insurance reserves):

a) creating new ones;

b) widening;

c) reconstruction;

d) renewing.

Also, the concept of the industrial gathering appears, at the expenses of widening of basic, circulation funds and also insurance reserves takes place”.

You’ll meet below the definitions of investments from “the course of economy”: the investments are called “placements of fund into the basic capital (basic means of production), reserves, also other economical objects and processes, which request long-termed influxing of material and cash means. “According to the division of capital into physical and money forms, the investments too must be divided into material and cash investments”.

They apportion investment commodity, to which belong industrial and nonindustrial building objects, vehicles purposed for changing or widened technical park and the furniture, increasing reserves and others.

“They call the total investments of production an investment product, which is directed towards keeping and increasing the basic capital (basic means) and reserve. Total investments consist of two parts. One of them is called the depreciation; it represents important investment resources for compensation of renewal till the level of before industrial usage, wearing out and repairing of the basic means. Second consisting part of the total investments is represented by net investments – capital investments for the purpose of increasing basic means”. Depreciation is not a compensation resource of wearing the basic funds out, but it is the purposeful financial source of such resources.
Human capital investment is “a specific kind of investments, mostly in education and health protection”.

“Real investments are the investments in the economical branches and also, they are kinds of economical activities, which provide influxing the increases of real capital, that is increasing material values of the industrial means”. We can agree with such definition with one specification that material and nonmaterial values too belong to the real capital (wealth), consequently science-researching experimental-construction results, various information, education of he workers and others. Such service as organization of the excitable games, also the service of redistribution social wealth from one private person to another (except charity).

“Financial investments represent placement of funds into the shares, obligations, promissory notes, other securities and instruments. Such investments, of course, do not give increases of the real material capital, but they help getting profit, consequently at the expenses of changing the course of the securities in the time of speculation, or distinguishing the course in different places of sell and purchasing”. We share wholly such definition, hence it follows that financial investments (if it is not followed by real investments as a result) do not increase real material wealth and real nonmaterial wealth. According to this context, the expression below is very important: “we must distinguish financial investments, which represent placement of the funds in the ways of selling and purchasing the securities for the purpose of getting profit and financial investments, which become cash and real, moved to real physical capital.”

In the “economical course” quoted before long and short-termed investments are separated. Recognizing the existence of the bounds between them, the authors ascribe short-termed investments to “one month or more” investments. If we get such conditioned criteria, that we can call the investments which overcome the terms of some months, long-termed ones, which is very doubtful and we don’t agree with it. A long-termed character of the fund placement is a significant feature of the investments (short-term doesn’t combine with the concept of investments). Principally, it would be better to point out quick compensative, middle termed compensative and long-termed compensative investments:

- less then 6 months – quick compensative;

- from 6 months up to the year and a half – middle termed compensative;

- more then the year and a half – long termed compensative.

We stopped at the definition of the investments in the capital work “economical course” for the special purpose, as, in it the author tried to discuss the concept of investments systemically and quite completely, herewith the book is published just now.

We’ll return to the discussion the definition economical category of “investments” in different publications in the following chapter. The definitions given here are quite enough for having a notion of the level of lighting up the given category in the economical literature.
What conclusions may be made according the definition of the mentioned economical category in the published works, except the made notions and specifications?

There is quite deeply, concretely and thoroughly defined the concept of “investments”, different definitions in the economical literature; but mostly in every works about the investments discussed by us until now, there is not opened the essence of investments as an economical category. In every monograph , even if it has a title investment, as an economical category , there is given only the definition, concept of investments. But, as the Academician Vasil Chantladze explains, “a concept is a discussion, which proves something about the distinguishing feature of the researched object. A concept out of much essential characteristic features represents only one, and essential in it is only – definition”.

But the categories are much wider; it is “a key, the most fundamental concept of every science”. Economical categories theoretically represent real, objectively existed productive relations. A category is the defining of occasions of existed characters, connections, relations of the objective world. Generally, any educational process is fulfilled by the categories, which give opportunities for dividing the processes and occasions semantically, for expressing the definitions of a subject and realize their specific peculiarities and economical relations of a material world.
Our goal is exactly to substantiate investments – as an economical category and also, as a financial category in the narrow understanding.

Here we apply for another manual thesis made by the academician Vasil Chantladze: “every financial relation is an economical one and every financial category is and economical one, but not every economical relation and economical category is financial relation and financial category”.
In the process of defining the investments, it is important to take in mind the sides of resources, expenses and incomes, because investment, from one side, is the result of the manufacture’s activity, and, from another one, – a part of income, which, in this case, is not used for usage.
Another occasion: it is advisable to discuss investments in two aspects: as a category of reserve and flow, which will reflect exactly the connection between “placement of funds” and “investments”.