Securities that are purchased in order to be held for investment. This is in contrast to securities that are purchased by a broker-dealer or other intermediary for resale. Banks often purchase marketable securities to hold in their portfolios.
1. The document provides an introduction to investments, discussing key concepts like primary and secondary markets, securities, and the objectives and process of investment.
2. It defines investment as the commitment of money or resources with the goal of earning future benefits. Individuals invest by saving money instead of spending it currently to gain larger consumption later.
3. The main objectives of investment are increasing returns, reducing risk, and providing liquidity, protection against inflation, and safety of capital. The investment process involves formulating a policy, analyzing opportunities, valuing assets, constructing a diversified portfolio, and regularly evaluating performance.
This document provides information about a student group project on capital market instruments. It includes the names and roll numbers of the group members, a table of contents for the project, and sections describing different capital market instruments like equity shares, preference shares, debentures, and bonds. It also discusses the differences between equity and debt securities and concludes that the capital market plays an important role in economic development.
This document discusses portfolio analysis and selection based on modern portfolio theory. It defines key terms like portfolio, phases of portfolio selection, the Markowitz model, efficient frontier, diversification and the optimum portfolio. The Markowitz model uses a mean-variance framework to identify efficient portfolios that maximize return for a given level of risk. An optimum portfolio provides the highest expected return for its risk level by balancing risk across different asset classes through diversification.
The document discusses reforms to India's financial sector that began in the early 1990s. It covers banking sector reforms, monetary policy reforms, and reforms to financial markets and the foreign exchange market. The reforms aimed to create an efficient, competitive financial sector by reducing regulations, introducing market forces, and improving regulatory standards and oversight. They occurred in two phases, with the initial phase in the early 1990s focused on operational flexibility and the second phase strengthening the system.
The document provides an overview of the Indian financial system. It discusses that the Indian financial system consists of both formal and informal sectors. The formal sector is regulated and caters to modern economic needs, while the informal sector is unregulated and deals with traditional, rural activities. The key components of the formal system are regulators like RBI and SEBI, financial institutions, instruments, markets, and services. The document then outlines the evolution of the Indian financial system from the pre-1951 private sector era to the current period of globalization.
This document summarizes the efficient market hypothesis (EMH) in three sentences:
The EMH states that market prices fully reflect all available public information and adjust instantly to new information. It has three forms - weak, semi-strong, and strong - with each form incorporating more types of information. Most research supports the weak and semi-strong forms, finding that historical data and public information are reflected in prices, but the strong form is not supported as non-public information can be used to earn excess returns.
1. The document provides an introduction to investments, discussing key concepts like primary and secondary markets, securities, and the objectives and process of investment.
2. It defines investment as the commitment of money or resources with the goal of earning future benefits. Individuals invest by saving money instead of spending it currently to gain larger consumption later.
3. The main objectives of investment are increasing returns, reducing risk, and providing liquidity, protection against inflation, and safety of capital. The investment process involves formulating a policy, analyzing opportunities, valuing assets, constructing a diversified portfolio, and regularly evaluating performance.
This document provides information about a student group project on capital market instruments. It includes the names and roll numbers of the group members, a table of contents for the project, and sections describing different capital market instruments like equity shares, preference shares, debentures, and bonds. It also discusses the differences between equity and debt securities and concludes that the capital market plays an important role in economic development.
This document discusses portfolio analysis and selection based on modern portfolio theory. It defines key terms like portfolio, phases of portfolio selection, the Markowitz model, efficient frontier, diversification and the optimum portfolio. The Markowitz model uses a mean-variance framework to identify efficient portfolios that maximize return for a given level of risk. An optimum portfolio provides the highest expected return for its risk level by balancing risk across different asset classes through diversification.
The document discusses reforms to India's financial sector that began in the early 1990s. It covers banking sector reforms, monetary policy reforms, and reforms to financial markets and the foreign exchange market. The reforms aimed to create an efficient, competitive financial sector by reducing regulations, introducing market forces, and improving regulatory standards and oversight. They occurred in two phases, with the initial phase in the early 1990s focused on operational flexibility and the second phase strengthening the system.
The document provides an overview of the Indian financial system. It discusses that the Indian financial system consists of both formal and informal sectors. The formal sector is regulated and caters to modern economic needs, while the informal sector is unregulated and deals with traditional, rural activities. The key components of the formal system are regulators like RBI and SEBI, financial institutions, instruments, markets, and services. The document then outlines the evolution of the Indian financial system from the pre-1951 private sector era to the current period of globalization.
This document summarizes the efficient market hypothesis (EMH) in three sentences:
The EMH states that market prices fully reflect all available public information and adjust instantly to new information. It has three forms - weak, semi-strong, and strong - with each form incorporating more types of information. Most research supports the weak and semi-strong forms, finding that historical data and public information are reflected in prices, but the strong form is not supported as non-public information can be used to earn excess returns.
This document discusses bank deposits, including the types of deposits, factors that affect deposits, and measures to increase deposits. It also covers pricing deposits, "Know Your Customer" guidelines for opening accounts, deposit insurance, and non-deposit sources of funds for banks.
This document discusses different types of mutual funds. It begins with an introduction to mutual funds, explaining that they allow investors to pool money for investment in a basket of assets managed by professionals at low cost. The document then outlines the main types of mutual funds:
On the basis of lock-in period, funds are either open-ended, allowing entry and exit at any time, or closed-ended, with a minimum three-year lock-in.
Based on investment, the main types are equity funds (investing in stocks), ELSS funds (for tax benefits), debt funds, balanced funds (mixing equity and debt), and sectoral funds (focusing on a single industry). Equity funds include large
For Videos use the links below
0 Course Introduction:: https://www.youtube.com/watch?v=9km4aXTus5c
1 Financial system and Environment : https://www.youtube.com/watch?v=BC2bAftm43c
2 Participants in a Financial System: https://www.youtube.com/watch?v=IEv_y7_aR7o
3 Functions of a Financial System: https://www.youtube.com/watch?v=T73-Dd8RM4I
4 Financial System and its components: https://www.youtube.com/watch?v=ovkAjEO8YAw
5 Efficiency of a financial system: https://www.youtube.com/watch?v=8xEUtvKYvPc
The document discusses dividend policy and provides details about:
1. The meaning of dividend and dividend policy, and factors that affect dividend policy such as ownership considerations, nature of business, and investment opportunities.
2. Different types of dividends including cash dividend, stock dividend, property dividend, and debenture dividend.
3. Dividend policies of 5 major Indian IT companies - Tata Consultancy Services, Wipro, Infosys, HCL Technologies, and Larsen & Toubro Infotech - and their dividend yields for the fiscal year 2013.
This document discusses the relationship between risk and return in investments. It defines total risk as the sum of systematic and unsystematic risk. Systematic risk stems from external market factors that affect all investments, while unsystematic risk is specific to a particular company. The expected return and risk of individual stocks varies, with higher risk investments generally offering higher returns. A portfolio combines multiple assets to reduce overall risk through diversification. The portfolio risk depends on the covariance and correlation between the individual assets' returns. Diversifying across assets with low correlation is an effective way to reduce risk.
Fundamental analysis involves analyzing macroeconomic conditions, industries, and individual companies. At the macroeconomic level, factors like GDP growth, inflation, interest rates, and fiscal/monetary policies are examined. Industry analysis evaluates the attractiveness of industries based on their growth stage, competitive environment, and sensitivity to economic cycles. Finally, company analysis assesses the financial statements, management quality, and competitive positioning of specific firms. Together, this three-tiered fundamental analysis helps investors evaluate investment opportunities.
The document provides an overview of insurance law and regulations in India. It defines key terms like life insurance and general insurance. Insurance is described as a means of protecting against financial loss from uncertain events and sharing risks. The key principles of insurance like insurable interest and indemnity are outlined. The major acts governing insurance in India are the Insurance Act of 1938, Insurance Regulatory and Development Authority Act of 1999, and Actuaries Act of 2006. The roles of regulatory bodies like IRDA in overseeing the insurance industry are also summarized.
The financial system serves as an intermediary between savers and investors, facilitating the exchange of goods and services as well as the transfer of resources. It is composed of financial assets, markets, and intermediaries. Financial assets are used to transfer funds from lenders to borrowers and represent claims on future income. Primary assets are issued directly to investors, while secondary assets are issued by intermediaries. Financial markets allow for the creation and exchange of assets. Money markets facilitate short-term lending while capital markets handle long-term funds. Financial intermediaries mobilize savings and allocate funds from surplus to deficit units. Regulatory bodies like RBI, SEBI, IDBI, and NABARD oversee the financial system to ensure
This document discusses the key concepts of financial management including its meaning, scope, objectives and related disciplines. Financial management aims to maximize shareholder wealth through investment analysis, working capital management, capital structure decisions, and dividend policy. The scope of financial management has evolved from a traditional approach focused on capital markets to a modern approach providing a framework for strategic financial decision-making. The objectives of financial management are typically profit maximization or wealth/shareholder value maximization. A case study on Reliance Industries outlines its strategic vision to reinforce its existing businesses and pursue new opportunities in industries like petroleum, retail, telecommunications and education.
This module discusses risk management and insurance. It covers topics such as risks and risk management, different types of risks, methods of handling risks including avoiding, controlling, accepting and transferring risks. It also discusses the basic concepts of insurance including risk pooling, law of large numbers, requirements of insurable risks, advantages and disadvantages of insurance. Additionally, it covers personal risk management process, objectives of risk management pre-loss and post-loss, insurance market dynamics and underwriting cycle. Finally, it discusses some key legal principles of insurance contracts such as offer and acceptance, consideration, insurable interest, subrogation and utmost good faith.
This document discusses foreign exchange risk and its management. It defines foreign exchange risk as the risk of an investment's value changing due to currency fluctuations. It identifies the main types of foreign exchange risk as transaction risk, translation risk, and economic risk. Transaction risk arises from currency movements between the signing and execution of contracts. Translation risk occurs when consolidating financial statements in different currencies. Economic risk affects the long-term expected profits and wealth of a company due to currency changes. The document outlines various hedging strategies to manage these risks, including the use of forwards, futures, and money markets.
Formula Plan in Securities Analysis and Port folio ManagementSuryadipta Dutta
This document discusses different types of formula plans for portfolio management. It introduces constant ratio plans, variable ratio plans, and constant rupee value plans. Constant ratio plans maintain a fixed ratio between aggressive and defensive portfolios. Variable ratio plans adjust the ratio based on market price fluctuations. Constant rupee value plans force selling when prices rise and buying when they fall to maintain a constant rupee value of the aggressive portfolio. Formula plans provide rules for buying and selling securities and help investors make better use of market fluctuations.
The document provides an overview of investment management concepts including the meaning of investment, objectives of investment, and financial markets. It defines investment as committing funds with the expectation of a positive return in the future. The objectives of investment are outlined as maximizing return, minimizing risk, and hedging against inflation. Different types of financial markets are also introduced such as the primary market, stock exchanges, and their functions in facilitating investment activities.
The document discusses risk and return in investments. It defines key concepts such as realized and expected return, ex-ante and ex-post returns, sources and measurements of risk including standard deviation and coefficient of variation. It also discusses the risk-return tradeoff and how higher risk investments require higher potential returns to compensate for additional risk.
This document provides an overview of the Indian capital market. It defines capital markets as markets for trading long-term financial securities, where individuals and institutions can buy and sell debt and equity instruments. The capital market has a primary market for new security issuances and a secondary market for trading existing securities. It discusses the key participants in the market - issuers who raise capital, investors who provide capital, and intermediaries who facilitate transactions. The document also outlines the roles and functions of the capital market in facilitating capital formation, savings mobilization, and economic growth.
The document provides an overview of derivatives markets, including the key terms and participants. It discusses how derivatives help transfer and hedge risks, facilitate price discovery, and catalyze economic activity. The main types of derivatives are forwards, futures, swaps, and options. Forwards and swaps are over-the-counter derivatives privately negotiated between parties, while futures and options are exchange-traded standardized contracts. Hedgers use derivatives to offset price risks, while speculators and arbitrageurs take positions to profit from price movements.
This document discusses strategies for smart investing. It outlines different industry sectors to invest in, including technology, basic materials, consumer goods, financials, healthcare, industrials, conglomerates, utilities and services. Specific sectors like technology, conglomerates/financials, healthcare/utilities are analyzed in more detail. The document also evaluates a sample portfolio versus the S&P 500 benchmark over 7 weeks, finding the portfolio achieved higher returns with lower risk through strategies like investing in technology and conglomerate/financial stocks.
As an investor having a good understanding of the principles of investing can help one achieve their financial goals. This presentation will look at the principles of compounding, rebalancing, market timing, risk reduction, and inflation.
This document discusses bank deposits, including the types of deposits, factors that affect deposits, and measures to increase deposits. It also covers pricing deposits, "Know Your Customer" guidelines for opening accounts, deposit insurance, and non-deposit sources of funds for banks.
This document discusses different types of mutual funds. It begins with an introduction to mutual funds, explaining that they allow investors to pool money for investment in a basket of assets managed by professionals at low cost. The document then outlines the main types of mutual funds:
On the basis of lock-in period, funds are either open-ended, allowing entry and exit at any time, or closed-ended, with a minimum three-year lock-in.
Based on investment, the main types are equity funds (investing in stocks), ELSS funds (for tax benefits), debt funds, balanced funds (mixing equity and debt), and sectoral funds (focusing on a single industry). Equity funds include large
For Videos use the links below
0 Course Introduction:: https://www.youtube.com/watch?v=9km4aXTus5c
1 Financial system and Environment : https://www.youtube.com/watch?v=BC2bAftm43c
2 Participants in a Financial System: https://www.youtube.com/watch?v=IEv_y7_aR7o
3 Functions of a Financial System: https://www.youtube.com/watch?v=T73-Dd8RM4I
4 Financial System and its components: https://www.youtube.com/watch?v=ovkAjEO8YAw
5 Efficiency of a financial system: https://www.youtube.com/watch?v=8xEUtvKYvPc
The document discusses dividend policy and provides details about:
1. The meaning of dividend and dividend policy, and factors that affect dividend policy such as ownership considerations, nature of business, and investment opportunities.
2. Different types of dividends including cash dividend, stock dividend, property dividend, and debenture dividend.
3. Dividend policies of 5 major Indian IT companies - Tata Consultancy Services, Wipro, Infosys, HCL Technologies, and Larsen & Toubro Infotech - and their dividend yields for the fiscal year 2013.
This document discusses the relationship between risk and return in investments. It defines total risk as the sum of systematic and unsystematic risk. Systematic risk stems from external market factors that affect all investments, while unsystematic risk is specific to a particular company. The expected return and risk of individual stocks varies, with higher risk investments generally offering higher returns. A portfolio combines multiple assets to reduce overall risk through diversification. The portfolio risk depends on the covariance and correlation between the individual assets' returns. Diversifying across assets with low correlation is an effective way to reduce risk.
Fundamental analysis involves analyzing macroeconomic conditions, industries, and individual companies. At the macroeconomic level, factors like GDP growth, inflation, interest rates, and fiscal/monetary policies are examined. Industry analysis evaluates the attractiveness of industries based on their growth stage, competitive environment, and sensitivity to economic cycles. Finally, company analysis assesses the financial statements, management quality, and competitive positioning of specific firms. Together, this three-tiered fundamental analysis helps investors evaluate investment opportunities.
The document provides an overview of insurance law and regulations in India. It defines key terms like life insurance and general insurance. Insurance is described as a means of protecting against financial loss from uncertain events and sharing risks. The key principles of insurance like insurable interest and indemnity are outlined. The major acts governing insurance in India are the Insurance Act of 1938, Insurance Regulatory and Development Authority Act of 1999, and Actuaries Act of 2006. The roles of regulatory bodies like IRDA in overseeing the insurance industry are also summarized.
The financial system serves as an intermediary between savers and investors, facilitating the exchange of goods and services as well as the transfer of resources. It is composed of financial assets, markets, and intermediaries. Financial assets are used to transfer funds from lenders to borrowers and represent claims on future income. Primary assets are issued directly to investors, while secondary assets are issued by intermediaries. Financial markets allow for the creation and exchange of assets. Money markets facilitate short-term lending while capital markets handle long-term funds. Financial intermediaries mobilize savings and allocate funds from surplus to deficit units. Regulatory bodies like RBI, SEBI, IDBI, and NABARD oversee the financial system to ensure
This document discusses the key concepts of financial management including its meaning, scope, objectives and related disciplines. Financial management aims to maximize shareholder wealth through investment analysis, working capital management, capital structure decisions, and dividend policy. The scope of financial management has evolved from a traditional approach focused on capital markets to a modern approach providing a framework for strategic financial decision-making. The objectives of financial management are typically profit maximization or wealth/shareholder value maximization. A case study on Reliance Industries outlines its strategic vision to reinforce its existing businesses and pursue new opportunities in industries like petroleum, retail, telecommunications and education.
This module discusses risk management and insurance. It covers topics such as risks and risk management, different types of risks, methods of handling risks including avoiding, controlling, accepting and transferring risks. It also discusses the basic concepts of insurance including risk pooling, law of large numbers, requirements of insurable risks, advantages and disadvantages of insurance. Additionally, it covers personal risk management process, objectives of risk management pre-loss and post-loss, insurance market dynamics and underwriting cycle. Finally, it discusses some key legal principles of insurance contracts such as offer and acceptance, consideration, insurable interest, subrogation and utmost good faith.
This document discusses foreign exchange risk and its management. It defines foreign exchange risk as the risk of an investment's value changing due to currency fluctuations. It identifies the main types of foreign exchange risk as transaction risk, translation risk, and economic risk. Transaction risk arises from currency movements between the signing and execution of contracts. Translation risk occurs when consolidating financial statements in different currencies. Economic risk affects the long-term expected profits and wealth of a company due to currency changes. The document outlines various hedging strategies to manage these risks, including the use of forwards, futures, and money markets.
Formula Plan in Securities Analysis and Port folio ManagementSuryadipta Dutta
This document discusses different types of formula plans for portfolio management. It introduces constant ratio plans, variable ratio plans, and constant rupee value plans. Constant ratio plans maintain a fixed ratio between aggressive and defensive portfolios. Variable ratio plans adjust the ratio based on market price fluctuations. Constant rupee value plans force selling when prices rise and buying when they fall to maintain a constant rupee value of the aggressive portfolio. Formula plans provide rules for buying and selling securities and help investors make better use of market fluctuations.
The document provides an overview of investment management concepts including the meaning of investment, objectives of investment, and financial markets. It defines investment as committing funds with the expectation of a positive return in the future. The objectives of investment are outlined as maximizing return, minimizing risk, and hedging against inflation. Different types of financial markets are also introduced such as the primary market, stock exchanges, and their functions in facilitating investment activities.
The document discusses risk and return in investments. It defines key concepts such as realized and expected return, ex-ante and ex-post returns, sources and measurements of risk including standard deviation and coefficient of variation. It also discusses the risk-return tradeoff and how higher risk investments require higher potential returns to compensate for additional risk.
This document provides an overview of the Indian capital market. It defines capital markets as markets for trading long-term financial securities, where individuals and institutions can buy and sell debt and equity instruments. The capital market has a primary market for new security issuances and a secondary market for trading existing securities. It discusses the key participants in the market - issuers who raise capital, investors who provide capital, and intermediaries who facilitate transactions. The document also outlines the roles and functions of the capital market in facilitating capital formation, savings mobilization, and economic growth.
The document provides an overview of derivatives markets, including the key terms and participants. It discusses how derivatives help transfer and hedge risks, facilitate price discovery, and catalyze economic activity. The main types of derivatives are forwards, futures, swaps, and options. Forwards and swaps are over-the-counter derivatives privately negotiated between parties, while futures and options are exchange-traded standardized contracts. Hedgers use derivatives to offset price risks, while speculators and arbitrageurs take positions to profit from price movements.
This document discusses strategies for smart investing. It outlines different industry sectors to invest in, including technology, basic materials, consumer goods, financials, healthcare, industrials, conglomerates, utilities and services. Specific sectors like technology, conglomerates/financials, healthcare/utilities are analyzed in more detail. The document also evaluates a sample portfolio versus the S&P 500 benchmark over 7 weeks, finding the portfolio achieved higher returns with lower risk through strategies like investing in technology and conglomerate/financial stocks.
As an investor having a good understanding of the principles of investing can help one achieve their financial goals. This presentation will look at the principles of compounding, rebalancing, market timing, risk reduction, and inflation.
This document discusses several issues relating to Islamic securities markets, including Sharia screening criteria, permissibility of investing in shares of Islamic banks and other companies, products like options and ETFs, and trading practices like speculation and short selling. It presents differing views among scholars and practitioners on some of these issues. While securities markets can benefit economies, an Islamic market would need regulations to ensure listings and transactions are Sharia compliant, such as prohibiting interest-based bonds and short selling due to their use of securities borrowing. With adaptations, the document suggests an Islamic securities market is possible.
The document discusses the biblical principle of investment, where giving and sowing leads to bountiful returns. It encourages investing in areas like friendship, love, and respect by showing those qualities to others. True investment is goal-directed, planned with prayer, and done with determination and cheerfulness. God invests in people by giving his son Jesus and the Holy Spirit. When people allow God to work through them, it leads to fulfilling their purpose and God's plans. The document advises investing first in areas like finances, intellect, relationships, spirit, and time in order to reap abundant returns, as God provides all that is needed.
1) The document discusses various investment options such as real estate, precious metals, equity, mutual funds, life insurance policies.
2) It recommends investing 20% of the total funds (Rs. 1 crore) in real estate property in Kharghar, Mumbai and another 20% (Rs. 1 crore) in gold as precious metals.
3) It suggests investing 25% (Rs. 1.25 crore) in equities like HUL shares and another 25% (Rs. 1.25 crore) in the BNP Paribas mutual fund.
4) The remaining 10% (Rs. 50 lakhs) is recommended for investment in a LIC life insurance policy
The document discusses return on security investment (ROSI) and making security decisions based on hard data rather than fear or random choices. It outlines two types of security measures - vulnerability reduction, which aims to prevent incidents, and impact reduction, which limits maximum loss. Vulnerability reduction ROI can be calculated by comparing risk costs before and after investing in a measure. Impact reduction provides efficiency but not a direct ROI. Gathering information on past incidents is important for making data-driven security choices.
Understanding of Investment and Investment decision process
The document defines key investment terms like investment, financial assets, marketable securities, and speculation. It outlines the differences between investment and speculation. The investment decision process involves security analysis, including fundamental and technical analysis, as well as portfolio management approaches. Common errors in investment decision making include inadequate understanding of risk and return, lack of a clear investment policy, relying too much on past performance, irrational trading behaviors, ignoring costs, improper diversification, and wrong attitudes towards profits and losses.
1. Portfolio management is a process of optimizing investment funds through activities like security analysis, portfolio construction, selection, revision and evaluation.
2. It involves choosing securities to create portfolios that balance risk and expected return. The optimal portfolio lies on the efficient frontier which shows maximum return for each risk level.
3. Risk is measured by variability of returns. The CAPM model relates expected return and systematic risk measured by beta for efficient portfolios on the SML and all securities.
This document provides an overview of key concepts related to investment including what investment is, the needs it fulfills, inflation and how it impacts returns, different asset classes and their typical returns, golden rules of investing, steps to take when investing, interest rates and factors that influence them, short-term and long-term financial investment options like savings accounts, fixed deposits, mutual funds, shares, bonds, derivatives and more. The document aims to educate readers on fundamental investment principles.
The chapter discusses the key concepts of investments including defining investments, differentiating types of investments, outlining the investment process and participants, describing steps in investing including establishing goals and managing taxes, examining how investing changes over an individual's life cycle and in different economic environments, and understanding popular short-term investment vehicles. The goal is for readers to understand different aspects of the investment landscape and how to approach investing.
Investment involves committing funds with the aim of achieving additional income or growth in value over time. It is characterized by risk, return, safety, liquidity, and tax benefits. The key aspects are committing funds for a future reward, an expectation of returns higher than realized returns due to uncertainty, and balancing risk and return based on one's objectives and capacity. Investment aims to maximize returns while minimizing risk through prudent analysis, whereas speculation takes greater risks seeking short-term capital gains.
Investment Securities. alternatives & attributesASAD ALI
This document discusses investment alternatives and their attributes. It describes direct and indirect investing. Direct investing includes non-marketable assets like savings deposits and money market securities like T-bills. Capital market securities include fixed income bonds and equity securities like stocks. Indirect investing is through investment companies like mutual funds. The document also discusses different types of stocks and attributes investors should consider like risk, return, marketability and taxes to evaluate investments.
This document discusses sources and forms of long-term financing. It describes the money and capital markets, including short-term and long-term securities. The main sources of intermediate and long-term debt are term loans and bonds. Bonds can take various forms such as mortgage bonds, debentures, convertible bonds, and floating rate bonds. Preferred stock and common stock are also discussed, along with factors that influence dividend policy.
The document provides an overview of financial markets and assets. It discusses different types of savings like savings accounts, bonds, and certificates of deposit. It also outlines various financial intermediaries. The document then examines specific financial assets in more detail, including bonds, their components and pricing, and equity investments like common stocks, mutual funds, and 401(k) plans. It emphasizes the importance of diversification and consistent investing for retirement goals.
This document summarizes various network solutions, wireless broadband offerings, and telecom value-added services. It provides a wide variety of scalable network solutions that can enable lightning-fast network speeds. It also offers customized content-based services over SMS, USSD, and WAP.
the cost of capital of a company describes the return expected by creditors of funds to companies. It includes the cost of equity, debt, hybrid and WACC
Stocks represent ownership shares in a company. Common shares give investors ownership of a small portion of a company and are traded on stock markets. Equity shares represent ownership in a company's revenue stream once debts are paid. The value of a stock is determined by factors like the company's financial prospects, earnings projections, and economic conditions. There are three main types of equity - common stock, which provides ownership and participation in company earnings; preferred shares, which have a defined dividend and priority over common shares; and warrants, which are long-term options allowing gains without buying common stock. Stock prices are set by trading between buyers and sellers and often reflect interest rates and the economy.
This document provides an overview of bond basics, including understanding risk and return characteristics of bonds, bond terminology, major types of bonds, how bonds are valued, and costs of investing in bonds. Key points covered include the risks of bonds like interest rate risk, inflation risk, and credit risk. Major bond types discussed are corporate bonds, treasury securities, municipal bonds, and international bonds. The document also explains how bond prices are determined based on interest rates, maturity, and an investor's required rate of return. Bond valuation metrics like current yield and yield to maturity are also defined.
Equities represent ownership in a company through shares of stock. When a company issues stock, it receives money in exchange that it can use for operations or expansion. In turn, stockholders receive potential benefits like capital gains if the stock price increases, dividends, and voting rights. Technical analysts examine factors like price, volume, market capitalization and corporate actions to evaluate individual stocks and sectors.
This document provides an overview of equities (stocks) including:
- Equities represent ownership in a company after debts are paid off and include benefits like capital gains, dividends, and voting rights.
- Common types of equities include warrants, preferred stocks, and convertible bonds.
- Corporate actions like stock splits, dividends, and secondary offerings impact stock holders.
- Technical analysts examine factors like price, volume, market capitalization to evaluate stocks.
- Markets can be segmented by sector, company size, geography and other criteria for analysis.
Sources of funds are needed for businesses to start up, continue operations, and expand. The main sources are debt and equity capital. Equity capital includes share capital from ordinary shares, preference shares, and deferred shares. Debt includes debentures, mortgages, loans from specialists, and government assistance. Short-term sources include bank overdrafts, loans, leasing, credit cards, and trade credit. Internal sources include profits, asset sales, and working capital reductions while external sources are evaluated on time availability, costs, and company control lost.
1. The document covers topics related to financial management including time value of money, risk and return, bond valuation, stock valuation, working capital management, cost of capital, and capital structure.
2. It defines key concepts such as annuities, perpetuities, different types of bonds and stocks, and provides examples of solved problems related to these topics.
3. Various ratios used to analyze financial statements are also discussed along with the importance of analyzing sources and uses of funds for business finance.
Sources of long term finance, Corporate governance AND Financial engineeringMohammed Jasir PV
Sources of long term finance — conventional and innovative sources — Leasing — Factoring — securitization
Dividend theories — Walter’s model — Gordens model — MM approach — legal aspects of dividend — formulation of dividend policy.
Corporate governance
Financial engineering
This document discusses various capital market instruments. It defines capital markets as dealing with medium to long term funds and describes primary roles as raising funds for governments, banks and corporations through stocks and bonds. It then discusses types of capital market instruments including equity (common/preferred stocks), debt (bonds, mortgages), hybrids (convertible bonds) and insurance instruments. The document provides details on features and types of these various capital market instruments.
This document discusses different types of investments and financial instruments. It defines investment as purchasing an asset with the goal of generating future income or appreciation. Examples given include factories, education, and monetary assets. Speculation aims to profit from short-term price fluctuations rather than long-term growth. The document contrasts features of investments versus speculation. It also outlines the investment process, different types of financial instruments including money market instruments, treasury bills, certificates of deposit, commercial paper, repos, and call money markets.
Financial markets bring together savers and investors through financial intermediaries like banks. Investing carries risk but also potential returns that can fuel economic growth. Common financial assets include bonds, stocks, and mutual funds. Bonds are loans that pay interest, while stocks are shares of company ownership. Investors consider risk versus return when choosing assets. Well-established stock markets let people trade assets, but crashes like in 1929 can have severe economic impacts.
All related information about capital market instruments such as debt instruments, equity instruments, insurance instruments, hybrid instruments, swaps etc.
This document provides an overview of derivatives and options. It defines derivatives as financial instruments whose value is based on an underlying asset. The main types of derivatives discussed are financial derivatives, which are based on stocks, bonds, currencies, and commodity derivatives, which are based on physical commodities. Options and swaps are described as common types of derivatives. The document explains what options and swaps are, their key features and terminology. It provides examples of how options and currency swaps work to illustrate their use in managing risk and reducing borrowing costs.
This document discusses various investment avenues in India categorized as short-term and long-term options. It provides details on savings bank accounts, money market funds, bank fixed deposits, post office savings, public provident fund, company fixed deposits, bonds, debentures, mutual funds and equity shares. Bank deposits offer safety of capital, guaranteed returns but lower returns compared to other long-term options like mutual funds and equity shares which provide higher returns but also involve greater risk. Overall the document analyzes features, benefits, risks and differences between various investment instruments available to Indian investors.
Bonds with warrants_and_embedded_optionsJapan Shah
This document discusses various types of bonds including bonds with warrants and embedded options. It describes bonds as an investment tool that provides stable returns with less risk for investors and a way for companies/governments to raise funds. Bonds with warrants offer investors exposure to equity upside through conversion options while also providing regular interest payments. The document outlines different bond structures like convertible bonds and floating rate notes, explaining their features, risks, and valuations.
This document provides an overview of derivatives, including options, futures, forwards, and swaps. It discusses the key characteristics of each type of derivative:
- Options provide the right but not obligation to buy or sell an underlying asset at a specified price. Option buyers pay a premium to the option writer.
- Futures are exchange-traded contracts that commit both buyer and seller to exchange an asset for a price agreed upon today, to be delivered on a future date. Margin requirements and daily marking to market help manage counterparty risk.
- Forwards are similar to futures but are private contracts between two parties that also commit both to the exchange. They do not trade on an exchange.
This document provides an introduction and overview of the contents and structure of a book on quantitative finance programming in C++. It outlines what topics will be covered in each chapter, including introductions to C++, object-oriented programming, generic programming, the standard template library, and matrix classes. It also lists prerequisites, software requirements, what topics are excluded, and where to find help. The document aims to prepare the reader for what to expect from the book.
This document summarizes the historical development of Islamic banking from its origins in early Islamic civilization to the modern era. It discusses:
1) The beginnings of Islamic banking practices dating back to early Islamic history, with merchants conducting basic banking transactions.
2) The establishment of the first modern Islamic banks in the 1960s-1970s, starting with local savings banks in Egypt and then the Dubai Islamic Bank.
3) The growth and spread of Islamic banks globally from the 1970s onward, with many new banks being founded and conventional banks establishing Islamic windows. Regulatory bodies for Islamic finance also formed during this period.
This document contains summaries of hadiths and statements from Islamic religious figures regarding the prohibition of interest (riba) in Islam. Some key points made in the document include:
1) The Prophet Muhammad cursed those who charge, pay, document, keep accounts of, or witness interest-based transactions. He said they are all equally guilty of the crime.
2) Consuming even a small amount of interest is considered worse than committing adultery 36 times, and interest has severely harmful effects.
3) When interest and adultery become commonplace in a society, they have invited Allah's wrath and punishment upon themselves in the form of drought, food shortages, and living in constant fear.
This document discusses the Islamic concepts of Riba, Gharar and Qimar. It defines Riba as any excess compensation without due consideration, especially interest charged on loans. The document outlines verses from the Quran that prohibit Riba and classify two types of Riba - Riba al-Nasiyah (interest charged on loans) and Riba al-Fadl (excess received when exchanging specific commodities). It also discusses the prohibition of Gharar (uncertainty) in contracts and defines Qimar as events where there is a possibility of total loss for one party.
This document provides an overview of Islamic law of contracts. It begins by explaining that understanding contracts is essential to comprehending Islamic economics and riba-free banking. Any agreement between two consenting parties is called an 'aqd. The document then discusses contracts in the pre-Islamic era and how Islam impacted contracts, prohibiting things like interest, gambling, and time-bound marriage. It defines key terms like undertaking, unilateral promise, and bilateral promise. It also explains the legal status of promises and examples of bilateral promises like supply agreements. Overall, the document serves as an introduction to key concepts and terminology regarding Islamic law of contracts.
Fiqh mayn ijma_ka_maqam_by_shaykhmuftirafiusmani.pdf;filename= utf-8''fiqh%20...ASAD ALI
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
Food safety has emerged as a global challenge, especially affecting developing countries. Major foodborne illnesses in these regions include botulism, shigellosis, campylobacteriosis, E. coli infection, staphylococcus aureus infection, salmonellosis, and listeriosis. These illnesses pose significant threats to human health and economic development. While efforts are being made internationally and locally to address food safety, developing countries continue to face difficulties such as lack of infrastructure, surveillance systems, and resources to curb the high prevalence of foodborne disease.
A cognitive process: lets a person make sense of stimuli from the environment• Affects all senses: sight, touch, taste, smell, hearing• Includes inputs to person and choice of inputs to which the person attends• Stimulus sources: people, events, physical objects, ideas• Helps adaptation to a changing environment
This document provides an overview of a 3-day training package on positive behaviour support. Day 1 covers an introduction to positive behaviour support and human rights. Day 2 focuses on communication, behaviours of concern, and functional behaviour assessments. Day 3 looks at positive behaviour support strategies, including changing background factors, skill development, and maintaining self-control. The training aims to help participants understand the relationship between personal factors and behaviours of concern, and how to provide positive support through assessment and intervention planning.
1. Mudarabah is a type of partnership where one partner provides capital to another to invest in a business venture, with profits shared according to a predetermined ratio.
2. There are two types of Mudarabah: restricted, where the capital provider specifies the business or place of investment, and unrestricted, where full freedom of investment is given.
3. In a Mudarabah, the capital provider is called Rab-ul-Maal and the manager is called Mudarib. The Mudarib acts as a trustee, agent, partner, and is liable for negligence, while also being entitled to a fee if the Mudarabah is terminated.
This document provides an introduction to the concept of Diminishing Musharakah, an Islamic financing structure. It outlines the basic structure which involves the bank and customer entering into a joint ownership agreement for an asset, with the bank owning a specified number of units. The customer uses the bank's share and gradually purchases the units over time through separate sale transactions, eventually becoming the sole owner. The key Shariah principles are that joint ownership and leasing of owned shares are allowed, while promises to purchase shares in the future are also permitted. An example is provided where a customer obtains 90% financing from the bank to purchase an asset, with the bank's share purchased over 5 years by the customer.
The global securities market has been constantly evolving over the years to serve the needs of traders. Traders require markets that are liquid, with minimal transaction and delay costs, in addition to transparency and assured completion of the transaction. Based on these core requirements, a handful of securities market structures have become the dominant trade execution structures in the world. In this article, we'll take a look at some of the most popular market structures currently in use.
There are six main types of mutual funds: money market funds, bond funds, hybrid funds, equity funds, sector funds, and index funds. Money market funds invest in low-risk, low-return money market securities. Bond funds invest in fixed income securities like government or corporate bonds. Hybrid funds invest in both bonds and equities. Equity funds invest solely in common stocks, with the goal of capital growth or income. Sector funds focus on specific industries. Index funds aim to match the performance of a market index at low cost. Mutual funds report returns as total returns including dividends and capital gains over time periods like one, five, or ten years. Regulations require mutual funds to appoint independent trustees and comply with
Mutual funds allow investors to pool their money into investment companies that manage the funds and invest in a portfolio of securities. There are two main types of investment companies - closed end funds and open end mutual funds. Closed end funds issue a fixed number of shares which trade on secondary markets, while open end mutual funds continuously issue and redeem shares based on their net asset value which is calculated daily. Both provide investors advantages like professional management, diversification of investments, and lower transaction costs compared to investing directly in securities.
Because of the risk-return tradeoff, you must be aware of your personal risk tolerance when choosing investments for your portfolio. Taking on some risk is the price of achieving returns; therefore, if you want to make money, you can't cut out all risk. The goal instead is to find an appropriate balance - one that generates some profit, but still allows you to sleep at night.
Incorporating the latest industry thinking and developments, this exploration of brands, brand equity, and strategic brand management combines a comprehensive theoretical foundation with numerous techniques and practical insights for making better day-to-day and long-term brand decisions–and thus improving the long-term profitability of specific brand strategies.
Market segmentation involves dividing the market into subgroups that have similar needs. There are four types of customer loyalty segments: hard-core, split loyals, shifting loyals, and switchers. Brand positioning is defining a brand's place relative to competitors in consumers' minds based on points of parity (shared attributes) and points of difference (unique attributes). Effective positioning requires relevance, clarity, distinctiveness, coherence, commitment, courage, and patience. Common positioning strategies include leveraging existing brands, focusing on product features/benefits, price-quality, competitive differentiation, and targeting specific customer categories. Positioning errors to avoid are under positioning, over positioning, confused positioning, and doubtful positioning.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Assessment and Planning in Educational technology.pptxKavitha Krishnan
In an education system, it is understood that assessment is only for the students, but on the other hand, the Assessment of teachers is also an important aspect of the education system that ensures teachers are providing high-quality instruction to students. The assessment process can be used to provide feedback and support for professional development, to inform decisions about teacher retention or promotion, or to evaluate teacher effectiveness for accountability purposes.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
Physiology and chemistry of skin and pigmentation, hairs, scalp, lips and nail, Cleansing cream, Lotions, Face powders, Face packs, Lipsticks, Bath products, soaps and baby product,
Preparation and standardization of the following : Tonic, Bleaches, Dentifrices and Mouth washes & Tooth Pastes, Cosmetics for Nails.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
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1. A. Fixed income securities
B. Equity Securities
Characteristics of
Investment Securities
2. Characteristics of bond
• Par value or face value of most bonds is $1000
• Typical bonds have a maturity time
• Most bonds are coupon bonds, where coupon
refers to the periodic interest that the issuer
pays to the holder of the bond
• Interest on bonds is typically paid semi-
annually
3. Characteristics of Bonds
• Zero coupon bond:
• An innovation in traditional format of bonds
• These bonds are sold at discount
• Issuers of zero bonds include local and federal
government
• Bond prices are quoted as a percentage of par
value
4. • The bond price reflect the par value and any
accrued interest, and increase or decrease in
the market interest yield
• If bond is selling at discount, it means that the
interest rate on the bond is below the current
interest rate on similar bonds in the market
and vice versa
5. • Callable bonds
• If a bond is callable, the issuer can call it back
by paying off the obligations
• Exercising the call provision become attractive
to the issue when market interest rate fall
significantly below the coupon rate on the
bond
• Cost of calling back include call premium or
administrative costs
6. • Senior securities:
• Corporate bonds are senior securities, which
mans they are senior to any prefferred stock
and to the common stock in terms of priority
of payment
• Within bonds categories, there exist
differences of priority of claims
• Debentures: unsecured bond that is not
backed by a specific asset
7. • Convertible Bonds:
• Bonds that are convertible at the holder’s
option into common stocks
• Junk bonds: High risk, high yield bonds
carrying low rating
8. Equity securities
• Equity securities represent ownership in a
corporation
• These securities represent residual claim
• There are two types of equities:
– Preferred stock
– Common stock
9. Preferred stock
• Dividend is fixed in amount and known in
advance on preferred stocks (like debt)
• The stream of dividends continues forever(like on
shares) unless it is called
• Preferred shareholders cannot force the firm into
liquidation if their dividend is not paid (like in
case of common stock)
• Preferred stock is also know is hybrid security
because it resembles both equity and fixed
income securities
10. • Preferred stocks have the feature of
cumulative dividends
• Preferred stock may carry variable rate of
dividend that is tied to current market interest
rate
• Preferred stock may also have feature of
convertibility into common stock (may be
mandatory or optional)
11. Common stock
• Common stock represents the ownerships
interest of the company.
• Ownership is concentrated or closely held
when the firm’s shares are held by few
individuals
• Ownership is scattered when shares are held
by lots of people
12. Characteristic of common stock
• Common shares give the right to shareholders
to vote
• It gives the right to receive dividends,
however, dividend rate is not fixed
• Common shares also give the right to right
issues
• Common shares are riskier than preferred
stock and bonds
13. Derivative Securities
• Securities that derive their values from an
asset or security
• There are two types of derivative securities
– Future contracts
– Options
14. Future contract
• A future contract obliges traders to purchase
or sell an asset at an agreed-upn price at a
specified future date
• The contract can be used for commodities or
securities
• Cash is not required to be paid until delivery,
only a margin is required to reduce the
chances of default of the other party
15. • The margin is small compared to the value of
the purchase or sell
• Many investors in future markets are hedgers
or speculator
• Hedgers seek to reduce risk of price
uncertainty over some future period of time
• Speculators seek to profit from future
uncertainty in prices
16. Types of future contracts
• There are two types of future contracts
– Long position
– Short-position
• Long-position:
• The long position is held by a trader who commits
to purchasing the asset on the maturity date
• Short position (short-selling)
The short position is held by a trader who commits
to deliver the asset on the maturity date
17. Advantages of future contract
• A. Helps in hedging
• B. investors can benefit from price fluctuations.
• Helps producers to get orders at current prices and
continue production without worry
• Buyers do not have to pay the full price, still they can
obtain the commodities in future at current price
• Buyers don’t have to worry about storage problems
18. Option Contracts
• Option is a right to buy or sell a stated number of
shares of stock within a specified period at a
specified price
• There are two types of option contracts:
– Put option
– Call option
• Put option
• An option to sell a stated number of shares at a
stated period at a specified price
19. • Call option
• A right to buy a stated number of shares at a
stated period at a specified price
• Parties in option contract:
• Option writer: who gives the right to the
buyer of the option in exchange for a price
• Option holder: who obtains the right to buy or
sell shares