Fund of Funds (FOFs)
Fund of Funds is a type of pooled investment fund that invests in other funds. Its investment strategy is holding a portfolio filled with other funds instead of directly investing in stocks, bonds, and other securities. It is also known as multi-manager investment. They generally invest in other mutual funds or hedge funds. (more…)
Equity market
An equity market is a market during which shares of companies are issued and traded, either through exchanges or over-the-counter markets. Also referred to as the stock exchange, it's one among the foremost vital areas of a free enterprise, it gives companies access to capital to grow their business, and investors a bit of ownership during a company with the potential to understand gains in their investment supported the company's future performance. (more…)
Dematerialization
Dematerialization is the process in which a company/ registrar takes back physical share certificates of an investor and destroys them. Then an equivalent number of securities in the electronic form are credited to the investor's account with his Depository Participant (DP). It is usually done at the request of the investor. The first prerequisite is to open an account with a DP and later request for dematerialization of certificates through the DP. Here, purchases made by an investor are credited to his account, and sales are debited. (more…)
Asset Management Company
An Asset Management company is a company that pools funds from its clients and invests them in stocks, real estate, bonds, etc. Asset Management companies manage many hedge funds, pension plans as well as high net worth individual portfolios. They are also called money managers or money management firms. (more…)
Market Sentiment
What Is Market Sentiment? The general prevailing attitude of investors as to anticipated price development in a market is called Market Sentiment. It is the overall attitude of an investor towards the financial market. It basically defines the investor's outlook towards particular securities. (more…)
Mid-Cap Stocks
Mid-Cap or Mid-Capitalisation is a term used to describe companies that have a market capitalization or market value between $2 and $10 billion. Mid-Cap Stocks fall between large-cap and small-cap stocks. The terms small-cap, mid-cap, and large-cap are used to describe the approximate market values of a company and can hence change over time.
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Penny Stocks
Penny stocks refer to stocks that belong to small companies. They are seen to be traded in the OTC market rather than on large exchanges. They are traded via electronic OTC Bulletin Board (OTCBB) or through privately owned OTC market groups. They lack liquidity and there is no trading floor for OTC transactions. They are considered to be highly speculative. (more…)
Aggressive Investment Strategy
A set of rules, behaviors or procedures, designed to guide an investor’s selection of an investment portfolio is known as an investment strategy. It guides an investor to take decisions based on goals, risk tolerance, and future needs for capital. Investment strategies can seek rapid growth where the main aim of investors is capital appreciation. Alternatively, it can also follow a low-risk strategy wherein wealth protection is their main aim. (more…)
Stock Options
A contract between two parties that gives the buyer the right to buy or sell underlying stocks at a predetermined price and within a specified time period, is known as an option contract. While investing in stocks carries a certain level of risk—stock options are particularly risky investments. One contract represents 100 shares of the underlined stock. (more…)
Stock index
What is a stock index? A stock index is an index that measures the stock market of a particular country and with the help of various statistical measures, we can know the change that took place in the stock market. The stock indices of any country represent the value of various securities that have been listed on the stock exchange and they are group together to form an index. If any change occurs in the price of a particular security that is included in the stock index the value of it may increase and decreased in accordance with the change in the price of the security. The group of securities that are included in the index is made on some common criteria like the same industry, market capitalization, size of a company, and so on. (more…)