Security Analysis

In: Business and Management

Submitted By HRIDESH21
Words 2397
Pages 10
Security Analysis and Investment Management
Unit-1

INVESTMENT * Investment means conversion of cash or money into a monetary assets or a claim on future money for a return. * Investment is the employment of funds on assets with the aim of earning income or capital appreciation. * Financial investment is the allocation of money to assets that are expected to yield some gain over a period of time. * In its broadest sense, on investment is a sacrifice of current money or other sources for future benefits.

SPECULATION * Speculation means taking up the business risk in the hope of getting short term gain. * Speculation essentially involves buying and selling activities with the expectation of getting profit from the price fluctuations. * The speculator is more interested in the market action and its price movements. * The speculator is interested in getting abnormal return.

Investment Vs. Speculation INVESTMENT | SPECULATION | * Time- long period * Risk- moderate * Return- moderate * Delivery of goods- yes * Decision- fundamental factors | * Time- very short period * Risk- high * Return- high * Delivery of goods- No * Decision- market behaviour |

Financial Markets
Maturity of Claim
Seasoning of Claim
Nature of Claim
Timing of Delivery A Financial market is a market for creation and exchange of financial assets. Classification of Financial Markets Debt Market Equity Market Money Market
Capital Market

Primary Market Secondary Market
Cash or Spot Market
Forward or Future Market

Security * Investment in capital market is in various Financial Instruments which are all claim on money. * Securities Contracts Regulation Act (1956) has defined Security as inclusive of share, stock, bonds, debenture Etc. * Securities represent evidence to property right.…...

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