When you buy a share of a company you become a shareholder in that company. Shares are also known as Equities. Equities have the potential to increase in value over time. It also provides your portfolio with the growth necessary…
A good investment portfolio is a mix of a wide range of asset class. Different securities perform differently at any point in time, so with a mix of asset types, your entire portfolio does not suffer the impact of a…
he responsibility for regulating the securities market is shared by Department of Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI). The absence of conditions of perfect…
It is advisable to conduct transactions through an intermediary. For example you need to transact through a trading member of a stock exchange if you intend to buy or sell any security on stock exchanges. You need to maintain an…
Before making any investment, one must ensure to: 1.obtain written documents explaining the investment 2.read and understand such documents 3.verify the legitimacy of the investment 4.find out the costs and benefits associated with the investment 5.assess the risk-return profile of…
One may invest in: •Physical assets and/or •Financial assets like real estate, gold/jewellery, commodities etc. such as fixed deposits with banks, small saving instrume nts with post offices, insurance/provident/pension fund etc. or securities market related instruments like shares, bonds, debentures…
Total equity capital of a company is divided into equal units of small denominations, each called a share. For example, in a company the total equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each…
A MutualFund is a body corporate registered with SEBI (Securities Exchange Board of India) that pools money from individuals/corporate investors and invests the same in a variety of different financial instruments or securities such as equity shares, Government securities, Bonds,…
The time value of money may be computed in the following circumstances: 1. Future value of a single cash flow 2. Future value of an annuity 3. Present value of a single cash flow 4. Present value of an annuity…
Present value of (PV) of the future sum (FV) to be received after a period ‘t’ for which discounting is done at an interest rate of ‘r’, is given by the equation In case of discrete discounting: PV = FV…