1. Mutual Funds(Open ended) A Mutual Fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as bonds, stocks, money market instruments and identical assets. Advantages: 1. Liquidity An advantage of mutual funds is the ability to get in and out with relative ease. In general, you are able to sell your mutual funds in a short period of time without there being much difference between sale price and the most current
2 Overview of the Financial System 2.1 Multiple Choice Questions 1) Every financial market has the following characteristic: A) It determines the level of interest rates. B) It allows common stock to be traded. C) It allows loans to be made. D) It channels funds from lenders-savers to borrowers-spenders. Answer: D 2) Financial markets have the basic function of A) bringing together people with funds to lend and people who want to borrow funds. B) assuring that the swings in the business cycle are
Stock market is a trading platform which provides an opportunity to buyers and sellers of securities to do transactions. As of now there are 23 recognised stock exchanges in India and 24th is likely to get functional soon. However the majority of transactions in securities happen only on the National Stock Exchange. The Bombay stock Exchange is the second largest contributor in the overall pie of total transactions. However it 's contribution is
If on the next exchange day the prices went up significantly in a way that the investor gained immensely, the investment would be regarded as a high-risk investment. High-risk investment Cost of the stock 200 * 125 = $25, 000 Value of stock after the first week
major fault occurs in the derivative market, as it plays a vital role as a risk management instrument in the economy. Financial derivatives had been introduced in the financial markets as an instrument to help manage risk cause by fluctuations in exchange rates, interest rates and stock market prices in the financial
vehicle is most favored? The answer to this question is corporate bonds. The corporate debt markets clearly dominate the corporate equity markets when new (external) funds are being raised. B. From our
Chapter 3 INDIRECT INVESTING Multiple Choice Questions Investing Indirectly 1. Which of the following is not a characteristic of investments companies? a. pooled investing b. diversification c. managed portfolios d. reduced expenses 2. In order to avoid paying income taxes, an investment company must: a. be classified as a non-profit organization b. invest only in municipal bonds. c. pass on interest, dividends, and capital gains to the stockholders
To make good decisions, financial managers must understand the environment and markets within which businesses operate. Therefore, in this chapter we describe the markets where capital is raised, securities are traded, and stock prices are established, as well as the institutions that operate in these markets. Because the overall objective of financial managers is to maximize shareholder value, we also take a closer look at how the stock market operates, and we
Sponsored DRs: 5 Why ADRs and GDRs? 6 To the Investors 6 To the Issuers 6 FCCB-Foreign Currency Convertible Bonds 7 Introduction 7 Explanation 7 Features of FCCB 8 Mexhanism/Regulations 8 Criteria for issuing FCCBs 8 Raising of funds through FCCB 9 What happens if FCCBs do not convert? 11 Taxation 11 Pricing norms for FCCBs 12 FCCB issue by the Indian Companies need to conform to various regulatory requirements 12 Role of SEBI – Pre-issue and Post-issue requirements &
period which has been characterised by rapid globalization. This sharp contrast emphasises the effects that globalization has on a country. The essay is a longitudinal study that seeks to understand the impact of globalization on the JSE Securities Exchange, since the democratic elections in South Africa. Firstly this essay will analyse the impact globalization has had on South Africa in general. Then the essay