a. What are the three types of Risk Preference? Explain. b. How do you identify the risk preference of the person? Explain. List and describe the different types of financial market instruments. 1. Explain the concept of risk premium. 2. What is the diffe...
In the capital market, both equity and debt instruments, such as equity shares, preference shares, debentures, zero-coupon bonds, secured premium notes and the like are bought and sold, as well as it covers all forms of lending and borrowing. Capital Market is composed of those institutions a...
Money gets invested in fixed income instruments like government bonds and debentures under income funds. The objective of the income fund is stable income on investment with modern growth of capital. Liquid Funds The money gets invested in short-term financial instruments like treasury bills, deposit...
Capital structure in financial management refers to the mix of debt and equity that a firm utilizes to fund its operations and investments. Read more on it here.
Term Deposits are safe investment instruments, unaffected by market volatility. To ensure your money grows steadily while managing risk, diversifying your investment portfolio is crucial. It should include instruments that offer high returns alongside those that protect your capital. While equities cater ...
ARecurring Depositsis a type of term deposit where customers invest money in regular instalments. Instead of depositing the entire amount at once, RD holders invest a fixed sum at regular intervals for a specified tenure. Many investors prefer safe instruments that provide a steady income, and ...
A debt fund is a kind of mutual fund that primarily invests in fixed-income assets including government securities, bonds, and many other debt instruments. This fund’s main objective is to preserve capital while providing monthly interest payments to investors as a source of income. Top Mutual...
Today, investment is mostly associated with financial instruments that allow individuals or businesses to raise and deploy capital to firms. These firms then rake that capital and use it for growth or profit-generating activities. While the universe of investments is vast, here are the most common...
Financial instruments provide efficient flow and transfer ofcapitalamong the world’sinvestors. They areassetsthat may be in the form of cash, a contractual right to deliver or receive cash or another type of financial instrument, or evidence of ownership in some entity. Key Takeaways A financial...
Capital marketHow do financial markets operate on a daily basis? This first of four volumes introduces the structures, instruments, business functions, technology, regulations, and issues that commonly found in financial markets. Placing each of these elements into context, Tee Williams describes what...