Diversification

What Diversification Is It is rare to find rational investors concentrating their entire wealth in a single security or investment.  Instead, they  tend  to invest  in  a diversified  portfolio  of securities.  The reason  is  that pooling  imperfectly correlated stocks  together helps to diversify away diversifiable (unique or non-systematic) risks. It has been found that risk of…

The Brokerage Business

T INTRODUCTION Every investor who wishes to transact business in the securities market will need the services of a brokerage firm unless such an investor is a member of an organized exchange or a registered dealer in securities. TYPES OF BROKERAGE FIRMS Brokerage firms and dealers insecurities can be classified…

Steps in Investment

STEPS IN INVESTMENT Undertaking an investment is a very important decision in life. Therefore all care must be undertaken to ensure the success of such an investment. There are certain things that need to be considered no mater the type of investment you want to undertake. This may be the…

Primary Market vs Secondary Market

PRIMARY MARKETS Companies can raise external funds through borrowing or issue of shares. If securities are issued they are sold in the Primary Market. The Primary Market is purposely for trading of new securities (IPOs) never before issued. That is to say, securities available for the first time are offered…
1 5 6 7 8 9 18