Investment Setting

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Investment setting

description

kevin security analysis and portfolio managament

Transcript of Investment Setting

Investment settingInvestment is theNet additions made to the nations capital stocksPersons commitment to buy a fat or a houseEmployment of funds on assets to earn returnsEmployment of funds on goods and services that are used in production processcEmployment of funds on assets to earn returnsSpeculatoris a personWho evaluates the performance of the companyWho uses his own funds onlyWho is willing to take high risk for high returnWho considers heresays and market behavioursdWho considers heresays and market behavioursTo frame the investment policy the investor should havenowledge about the company and brokersInvestible fundsnowledge about the investment alternativesnowledge about the markets with fundsdnowledge about the markets with funds The stock isSmall units of e!ual value called sharesE"pressed in terms of moneyE"pressed in terms of number of shares#ully paid up and partly paid up sharesbE"pressed in terms of money$ero coupon bonds%&S& Security marketWall street'apan(s security market)alal streeta%&S& Security market*apital Inde" bonds are linked with+SE Sense"NSE Nifty*onsumer Price Inde"+SE ,--**.NS%/E0 P0I*E IN)E1The negotiable 2nancial instrument is di3erent from the non4negotiable 2nancial investment in terms of5nnuity periodInterest rateTransferability#ace valuectransferabilityInvestment made on a house property is a#inancial investmentEconomic investmentNon4negotiable 2nancial investmentNon42nancial investmentdNon42nancial investmentWhich one of the following is nota money market securityTreasury billsNational savings certi2cate*erti2cate of deposit*ommercial paperbNational savings certi2cate*ommercial papers are%nsecured promissory notesSecured promissory notesSold at a premiumIssued for a period of , to 6 yearsa%nsecured promissory notesThe present rate of ppf is,-787,,7,67c,,7The particular scheme helps in deferring the ta" paymentPublic provident fundNational savings schemeNational savings certi2cate9ife insurance schemebNational savings schemeN+#* s o3er higher interest rate because ofThe best management fundsThe competitionamong the N+#*sThe risk involvedThe credit ratingcThe risk involvedThe open ended schemes.pen for a particular period:ave 2"ed period of maturity9isted in the stock e"changes.pen on a continuous basisd.pen on a continuous basisInterval fund isInde" fund.pen end fund5 closed end fund5 combination of close and open end fundd5 combination of close and open end fundInde" schemes0eturns e!uals to inde" returns0efect the market5re income schemes5re ta" saving schemesa0eturns e!uals to inde" returns