Following are the main financial products/instruments dealt in the Secondary market which may be divided broadly into Shares and Bonds: Shares: Equity Shares: An equity share, commonly referred to as ordinary share, represents the form of fractional ownership in a …
One needs to invest to: •earn return on your idle resources •generate a specified sum of money for a specific goal in life •make a provision for an uncertain future One of the important reasons why one needs to invest…
The sooner one starts investing the better. By investing early you allow your investments more time to grow, whereby the concept of compounding (as we shall see later) increases your income, by accumulating the principal and the interest or dividend…
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…
The Securities Contract (Regulation) Act, 1956 [SCRA] defines ‘Stock Exchange’ as any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. Stock exchange could be…
Simple Interest: Simple Interest is the interest paid only on the principal amount borrowed. No interest is paid on the interest accrued during the term of the loan. There are three components to calculate simple interest: principal, interest rate and…