14. Liquidity. Securities traded in active financial markets are liquid assets. Explain why liquidity is important to individual investors and to mutual funds. Liquidity. Securities traded in active financial markets are liquid assets. Explain why liquidity is important to individual investors and to mutual funds Liquidity is important because individual investors and mutual funds may need to have the ability to turn investment into cash quickly. There may get a lower rate of return but‚ if they
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Only 5 years ago‚ the largest‚ longest and most widespread financial scheme in history‚ took place: The Bernie Madoff Scandal. Bernie Madoff was found guilty for robbing his investors of billions of dollars. He didn ’t just con fat-cat billionaires and celebrities (such as Kevin Bacon and Steven Spielberg); individual investors‚ banks and even charities lost money in the scheme. In this report I will be bringing you on an adventure to dig up the truth of what really happened back in 2008. We will determine
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the whole economy. There have been some evidences that foreign direct investment (FDI) benefited developed countries’ economy. Recently‚ the Australian government has proposed a new policy that would give fairly large incentives to foreign direct investors. However whether the FDI would benefit Australia’s automobile industry and textile industry‚ is questionable‚ and needs to be critically evaluated. This report has been written by the Manufacturers Association‚ and it is believed that there would
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In a ’demat account’ ‚shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investor while registering with an investment broker (or sub-broker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a demat account for the purpose of transacting shares. Access to the demat account requires an internet password and a
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similar option payoff‚ instead of using American or European Options‚ a similar form of Asian options could be used to determine the maturity payoffs of the options. And this type of options can have benefits to both investors and HSBC. a) The benefits to the investor Investors can enjoy returns with lower volatility. Because the process of determining the exercise price is dependent upon the arithmetic average of the index of 7 particular days during 7 month with 30 days of interval‚ extremely
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had affected many people including high profile investors. He pled guilty to defrauding investors in the amount of over $10 billion. Madoff was very selfish. He set his own benefit higher than everybody else‚ even his family and friends. He defrauded investor by Ponzi Scheme and let them lose all their money‚ feel hopeless and also pain. (iii) Analysis : Basically‚ Madoff had such a good reputation in the financial community‚ he attracted investors by promising a large return (maybe 10 to 12 percent
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both development & regulation of the market‚ and independent powers have been set up. Paradoxically this is a positive outcome of the Securities Scam of 1990-91. The basic objectives of the Board were identified as: to protect the interests of investors in securities; to promote the development of Securities Market; to regulate the securities market and for matters connected therewith or incidental thereto. Since its inception SEBI has been targetting the securities and is attending to the
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| 1.6 Evolution of online trading | 9-17 | | 1.7 Reasons for online trading | 17-18 | | 1.8 Reasons for emergence of online trading | 18 | | 1.9 Recent developments | 19 | | 1.10 With online trading an investor can- | 20 | CHAPTER -2 | RESEARCH DESIGN | 21-24 | | 2.1 Statement of problem | 21 | | 2.2 Need for the study | 21-22 | | 2.3 Review of literature | 22 | | 2.4 Objective of the study |
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Equity Saving Scheme“(RGESS)‚exclusively for the first time retail investors in Securities Market. This Scheme would give tax benefits to new investors who invest up to Rs. 50‚000 and whose annual income is below Rs. 10 lakh. The Scheme not only encourages the flow of savings and improves the depth of domestic capital markets‚ but also aims to promote an ‘equity culture’ in India. This is also expected to widen the retail investor base in the Indian securities markets. Salient features of the Scheme
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have it on good authority she wasn’t referring to exchange-traded funds (ETFs). New research shows that the very features of ETFs that make them so attractive are actually leading many investors to earn lower returns. The problem with ETFs is not that they are inherently flawed; it’s just that they tempt investors into money-losing behavior. ETFs’ virtues are well known. To name a few: They are relatively inexpensive (see Focus on Funds)‚ tax-efficient‚ and provide immediate portfolio diversification
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