Securities & Securities Analysis

What is a Portfolio ? A portfolio refers to a collection of investment tools such as stocks, shares, mutual funds, bonds, cash and so on depending on the investor’s income, budget and convenient time frame. Following are the two types of Portfolio: Market Portfolio Zero Investment Portfolio What is Portfolio Management ? The art of selecting the right investment policy for the individuals in terms of minimum risk and maximum return is called as portfolio management. Portfolio management refers to managing an individual’s investments in the form of bonds, shares, cash, mutual funds etc so that he earns the maximum profits within the stipulated time frame. Portfolio management refers to managing money of an individual under the expert guidance of portfolio managers. In a layman’s language, the art of managing an individual’s investment is called as portfolio management. Need for Portfolio Management 1.        Portfolio man...

Who are Speculators? The speculators are not genuine investors. They buy securities with a hope to sell them in future at a profit. They are not interested in holding the securities for longer period. Hence, their very object of buying the securities is to sell them and not to retain them. They are interested only in price differentials. In reality, there is not a hundred percent speculator or an investor. Each investor is to a certain extent a speculator. Similarly, every speculator to a certain extent is an investor. Thus, the difference between the two is a matter of degree only. Kinds of Speculators The speculators are classified into four categories such as 1.                    Bull, 2.                    Bear, 3.             ...

Primary and Secondary Market The financial market is a world where new securities are issued to the public regularly. It is a world full of varied financial products and services, tailored to the need of every individual from all income brackets. These financial products are bought and sold on the  capital market , which is divided into the primary market and secondary market. This post will be a detailed explanation of primary market and secondary market and will draw the distinction of primary market vs. the secondary market. Definition of Primary Market The primary market is also known as the new issues market. It deals with new securities being issued for the first time. The essential function of a primary market is to facilitate the transfer of investible funds from savers to entrepreneurs seeking to establish new enterprises or to expand existing ones through the issue of securities for the first time. The investors in this market are banks, financial instituti...