Issuance of securities market (primary market) are in scope to
deal with the stock at the time of issuance for the first time;,
through the so-called subscription, either by issuing shares at
the founding of new companies or increase their capital after
incorporation, or the issuance of bonds to loans when needed
Long-term. The IPO shares may be a special (closed) any limited to
only the founders and may be years; and by offering all or some of
the company's shares to the public to subscribe to it. Depending
on the type of company contributor.
The subscription of bonds is often years, with recourse to the
public to subscribe to the bonds. Securities market (secondary
market) are in the scope of securities that have already been
issued in the IPO.
Includes the handling of such securities secondary market sales
and purchases between the holder and any other investor; so
obvious in this market that the proceeds of the sale of securities
did not go by, but who goes to holders of such securities who have
access to the output of the sale; They bear the losses (in the
case Lack of the sale price of paper with the purchase price), as
they reap the profits (in the case of increasing the sale price of
paper with the purchase price).
This market either are organized, then called "stock exchange", or
other organization and in this case, securities outside the stock
exchange, through money changers and banks and securities brokers.
Shares represent ownership in a corporation, is sometimes referred
to the term "share" in the company.
Historically stocks tend to rise in value over time. It also has
the prospect to achieve a better performance than other types of
investment over the long term. However, the stocks are vulnerable
to price fluctuations than other financial instruments. Bond is a
loan from investors to institutions and governments; where the
investor (lender) to obtain a specific interest rate for lending
money to the idea, and in return receive government or company
(the borrower) on the funds they need, as investors also receive
the amount of initial investment - The principal amount or price
of the issuance of bonds - which is fixed at the end, the bonds
could be issued for periods of up to thirty years, are classified
according to their quality or the prospects for reimbursement.
Trading used this word to describe the trading fund units, shares,
bonds and others. Discount the term usually used to describe the
situation when shares or bonds or units in the fund closed, a
price does not reflect the full value, which means for companies
to deal at least as much as is the subject of their reports, while
the mean for the funds to deal at least value Underlying assets,
as means for the bond deal at least to the realization of the
asset value. I mean dividend distribution of funds invested on
various types of investments, or exporters of securities in an
attempt to reduce investment risks.
Diversification distribution part of the company's profits to
shareholders, has traditionally been that the big companies just
and stable dividend to shareholders, while small companies
reinvesting their profits to ensure the sustainability of growth.
Return the current earnings yield is already Mugodatk bonds, and
the current yield is a ratio between the interest earned to the
actual market value of a bond, which shows the percentage: the
annual interest divided by the actual market value of Bonds =
current yield.
Return this could change depending on the market value of the
bond. Portfolio investment is a group of people are assembled part
of their savings in order to mutual benefit. The investment
portfolio is managed (University of funds) by the Director-called
portfolio manager, which is either a single person or a company
composed of a group to manage these investments daily basis, and
adopt the investment of such funds on the type of investment in
selected assets such as stocks, bonds and money markets , Or
through a common structure. The governor granted several
concessions for investors, including:
First: the purchasing power of the portfolio in a number of
investment options in view of the purchasing power enjoyed by
funds raised by and through diversification in this way is to
reduce risk in the event of the inability of one or more of these
assets to achieve the expected benefits.
Second: because of the combined purchasing power, the portfolio
can purchase and sales volumes; which they can purchase at
discounted prices, an advantage not enjoyed by a single investor.
Third: the experience of the portfolio manager an advantage not
enjoyed by the personal investor, and the resources available to
managers of the governor is not possible for ordinary investors,
including the ability to visit these companies and their financial
study. Finally, the administrative director of portfolio
management of the portfolio; which relieves the investor of the
follow-up of the daily paper, these factors combined:
Diversification, cost reduction, and qualified management of
investment portfolios to make one of the best ways to take
advantage of the investment. Fund investment income is distributed
profits to the campaign proceeds units from dividend and interest
rate of its assets in the securities portfolio investment,
investors can choose between the receipt of dividends or
reinvested, dividends may be subject (whether paid to the investor
or reinvested) for taxes, both in the State Investment fund
registered in the State of residence of the investor.
Term financial instruments include financial instruments of both
stocks and bonds and debt instruments. Interest is the amount paid
by the borrower as compensation for the use of borrowed money, or
the amount received by the funds on deposit in the bank or other
institution, and this amount shall be defined as a percentage of
the annual amount of the original. The volume of liquidity is cash
available for investment, and investment fund reserves equivalent
to 5% of total assets in the form of cash. However, the magnitude
of this liquidity could rise or fall as needed; For example, if
there have been indications that the market in which the fund
invests on the verge of decline could be the fund manager to
temporarily increase liquidity through liquefaction proportion of
the assets of the Fund. Annual report is a report on the company's
operations for the year ended, the report represents a very useful
document to shareholders, allowing them to follow the performance
of the company and thus their investments, and the annual report
usually includes:
<Section explains the philosophy of the company or how they work,
this section identifies what it considers its cultural company
that distinguishes it from similar companies or competitors.
<Financial statements:
The profit and loss accounts and the results of the year and the
balance sheet show the balance sheet assets and liabilities of the
company at the end of that fiscal year, compared with the previous
fiscal year. <Detailed reports on each of the company's
operations, and these reports shed light on any weak link in the
management structure. <Report of the auditors confirmed that the
figures and data contained in the annual report, subject to
scrutiny by external auditors, and whether it reflects a fair and
accurate picture of the finances of the company. Manual Guide
subscription offering includes a detailed description of the
Investment Fund or the company, in the case of the Fund This guide
illustrates how the Fund's objectives and investment funds, fees
and expenses associated with its management. PORT term used to
describe a group or a combination of stocks and bonds.
To deliberate on the old term refers to companies listed for
trading on financial markets. Realization of assets when the
investor infusion of its assets in the fund units; it is the sale
of its units, also used the term to refer to the date on which the
payment of the value of the Bonds official. Net assets total
assets of the fund or the company. Minus total liabilities of the
same fund or company. |
