meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies‚ pension funds‚ corporations‚ charities‚ educational establishments etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds). * Portfolio management: Each of the investment avenues has their own risk and return. Investor plans his investment as per this risk – return profile
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assets. Another is tax. (high tax-bracket investors would‚ other things equal‚ would prefer tax-exempt securities [municipal bonds]). brokered markets (when a bank seeks out investors to purchase an issue directly from the issuing firm‚ it is acting as a broker) and dealer markets (when an inv. bank purchased and sold a security issue‚ it is acting as a dealer – profit is the bid-ask spread [ask price is investors’ purchase price & bid price is investors’ sale price‚ with ask price greater than
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Subjecting rating agencies to oversight by the Securities and Exchange Commission (SEC). This requires more transparency in assumptions and methodologies behind producing ratings * Creating the Office of Credit Ratings. This office protects investors by overseeing the practices of NRSROs in determining credit ratings‚ the protection of users of credit ratings and promoting accuracy in credit ratings‚ including avoidance of conflicts of interest and greater disclosure. * Each NRSRO is required
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be occurs. Most of the companies involved in the earnings game where the companies have desire or have took actions to meet the analysts’ earnings per share predictions. The common players of this game include the companies themselves‚ analysts‚ investors‚ and accounting firms. There are many issues had been arise in the earnings game. ISSUES AND ANALYSIS 1.0 MANAGEMENT In order to meet the analysts’ expectation on the earnings per share‚ companies will use some tactics to distort their current
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suggested that the company was to be resold. Deprivatization will discourage foreign direct investment‚ this is because investors will fear the occurrence of such a situation in the future and therefore will prefer to invest in other regions. There are some factors that encourage foreign direct investment which include political stability and well defined property rights and when investors learn that political influences will occur they will not invest. Foreign direct investment has advantages in that
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project under the title of “Comparative Study on Performance Evaluation of Mutual Fund Schemes and Equity of Indian Companies” This research project is specially designed to understand the subject matter of market risk and to help investors to invest in less risky project also to analysis the portfolio investment with the less risk and the best return and I also gain the knowledge of the
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countries in Europe and around the global market. The European debt crisis and U.S financial crisis are the key incidents affecting the world financial markets in the period of 2010-2012. With the market turmoil of 2008 and 2009 in fairly recent memory‚ investors were feared to take risk in the stock markets‚ as instabilities of global stock market accordingly enhanced. Stock market is a key element prior to reflect the performance of economy. It is an important part of the economy of a country. The stock
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mature in 1.5 years with a principal payoff that does not exceed the initial principal amount. Given in the case is that the current price of a Dell share is $25.72. If an investor would like to invest $1000‚ the investor would be able to own 38.88 ($1000/$25.72) shares of Dell. The coupon rate is semi annually paid at 12%. The investors payment structure could be defines as $60‚ $60‚ $60+final payment. But because it is not a bond the final payment is will not be equal to $1‚000. Instead the final payment
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result in less than optimum performance. The purpose of any business is to make money for its owners and investors. It is an obvious point to make but still an important one. Some people are so concerned with growth that they are willing to break laws and hurt others just so they can get further in life‚ but others are more concerned with building a foundation for the employees and investors alike to grow and make a living within the company. Both types of people have the same motive‚ financial gain
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risks‚ maximization of yield and liquidity are the objectives of investment. Individual investors have to make strenuous efforts to achieve a rational choice of securities for minimizing risks and maximizing yield. The task becomes difficult for the individual investors who are not so well informed‚ whereas a Mutual Fund possesses the resources and expertise to make the right choice for him. The individual investors may have problems of dealing with a large number of companies‚ and making the right
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