161. Hedging:
hedging means minimize the risk.
162. Capital market:
capital market is the market it deals with the long term investment funds. It
consists of two markets 1.primary market 2.secondary market.
163. Primary market: those
companies which are issuing new shares in this market. It is also called new
issue market.
164. Secondary market:
secondary market is the market where shares buying and selling. In India
secondary market is called stock exchange.
165. Arbitrage: it means
purchase and sale of securities in different markets in order to profit from
price discrepancies. In other words arbitrage is a way of reducing risk of loss
caused by price fluctuations of securities held in a portfolio.
166. Meaning of ratio:
Ratios are relationships expressed in mathematical terms between figures which
are connected with each other in same manner.
167. Activity ratio: it is
a measure of the level of activity attained over a period.
168. Mutual fund : a mutual fund is a pool of money, collected from investors, and
is invested according to certain investment objectives.
169. Characteristics of Mutual Fund :
·
Ownership of the MF is in the hands of the of the investors
·
MF managed by investment professionals
·
The value of portfolio is updated every day
170.advantage
of MF to investors :
·
Portfolio diversification
·
Professional management
·
Reduction in risk
·
Reduction of transaction casts
·
Liquidity
·
Convenience and flexibility
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