Cryptocurrency Q&A
What is the MEC theory of investment?
What is the MEC theory of investment?
Emanuele
Tue Nov 19 2024
|
6 answers
1319
The MEC theory of investment refers to a specific investment approach in the mechanical equipment manufacturing industry. It involves making equity investments in companies within this sector, with the goal of obtaining returns through participation in the management and growth of these businesses. This theory emphasizes industry-specific knowledge, risk assessment, and active involvement in the invested companies' operations.
6 answers
EmeraldPulse
Thu Nov 21 2024
MEC is a crucial tool for understanding how firms should evaluate investment decisions.
Was this helpful?
132
20
Elena
Thu Nov 21 2024
It takes into account the expected return from an investment, which is the potential profit a firm anticipates from deploying its capital.
Was this helpful?
382
26
RubyGlider
Thu Nov 21 2024
Additionally, MEC considers the supply price of capital, which represents the cost of acquiring the necessary funds for the investment.
Was this helpful?
175
87
Eleonora
Thu Nov 21 2024
John Maynard Keynes introduced the concept of marginal efficiency of capital (MEC) in his seminal work, the General Theory.
Was this helpful?
246
42
CryptoBaron
Thu Nov 21 2024
By comparing these two factors, firms can gain insight into whether an investment is likely to be profitable.
Was this helpful?
58
37
Load 5 more related questions
