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Investment Theory

Topics include Efficient Market Hypothesis, Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory, and investment strategies

364 Questions

Disadvantages of investment?

if you invest in somthing and your stokes go down you lose money and theres no way to get your money back.

What is a neper?

1 neper = 8.6858896381 decibel.

Advantages and disadvantages of portfolio investment?

With a portfolio investment, your money is spread across different companies instead of investing all of it with one company. Advantages include less risk, less maintenance, and more choices. The main disadvantage is the you may miss out on larger profits.

What did Luther crowell invent?

Luther Crowell is best known for inventing the modern paper bag. In 1868, he patented a machine that could produce square-bottom paper bags, which made them more practical and efficient for packaging. His invention significantly influenced the retail and grocery industries by providing a more durable and convenient alternative to other types of bags available at the time.

What is Neff?

Neff can be a surname, native to German and related languages.

It is the brand name of a line of headwear and related accessories (Neff Headwear Inc.).

It can be an acryonym NEFF, meaning (among other possible things)

- Non-Essential Functional Failure

- New England Forestry Foundation

- North East Fraud Forum

- North Eastern Fly Fishing

- Nuremberg Peace Forum (Nürnberger Evangelisches Forum für den Friede)

*In textspeak, NEFF as well as NEF? can mean "any friends"/"any female friends."

Do people have to pay income tax on realized investments after they pay capital gains tax?

No. You will not pay income tax in addition to capital gains tax if I understand you correctly. However, capital gains tax for an individual is reported and paid on your 1040 income tax return. The only difference is that the rate for capital gains taxes is lower than the regular income tax levels.

How can a person make money in the stock market?

by buying and selling stocks majorly aside acting as a broker or jobber in the secondary market.

What is the outlook for the FMCG Sector in 2012 in India?

The FMCG Sector offers the most conservative or defensive options in the current market scenario. The consumption demand for FMCG products continues to be strong in both local and international markets. Also, the domestic consumption is growing irrespective of the interest rate cycle and the domestic economic scenario. As a result, the FMCG sector is expected to do well in the future.

If you are thinking, how the FMCG Sector can grow in such a volatile economy, think about this. "Right from the moment you wake up to the time you go to bed, you use some or the other FMCG product. Toothpaste, Mouthwash, Soap, Shampoo, Deodorant, Mosquito Repellent etc. and etc." The list is endless. With growing populations in India as well as around the globe, do you really think the demand for FMCG products will come down???

What is brs in finance?

brs means bank reconciliation statment.

Does the price of an option increase or decrease as the underlying asset becomes more volatile?

Usually, yeah. (Answerer shrugs...) In the derivatives business there are no absolutes, but in a lot of cases the premium rises with increasing volatility.

What is call and put in stock market?

There are call and put options and call and put futures contracts. They work the same, except that with an option contract you can allow the contract to expire worthless, while a futures contract has to either be closed out or settled. Let's use options terms.

A call option gives the purchaser the right, but not the obligation, to buy stock at a certain price on or before a certain date. A put option gives the purchaser the right, but not the obligation, to sell stock at a certain price on or before a certain date.

You buy a call if you think the price of the stock is going up. Calls become worth exercising (or "in the money") when the stock is more expensive than the "strike price" on the contract. So...if you have a call whose strike price is $20, and the stock goes to $23, you exercise the contract, buy for $20 per share and sell at $23. You had to pay a "premium" to buy the option, so subtract the premium from the difference between what you bought it for and what you sold it for to determine your profit.

You buy a put if you think the price of the stock is going down, and a lot of these are bought to stop losses. You have a stock you paid $20 for. It's gone up to $40 and you'd like to keep some of the profits. You therefore buy a put at $38. If the stock drops below $38, you exercise the option, sell the stock, subtract the premium and keep the profits.

Can companies make public issue without listing in stock exchange?

No. Every public issue of shares has to be followed by listing in an organized stock exchange.

What is Trading Exposure risk?

trading exposure risk arise when an institution deliberately takes on a currency exposure with the intention of profiting from it. in this instance, company choose not to hedge a foreign currency receivable or payable until such time when the exchange rate move in its favour .if the trader is w

wrong and the exchange rate move against its favour , the company ends up with foreign exchange losses

Do only rich people invest in stock markets?

Because they have the money to ride out the ups and downs of the stock market. If you have a lot of money you can take those risks whithout going backrupt. You can also get even richer. :)

Where can you buy a 1 dollar investment or find a investor that can invest it for you?

You can't. Though you could find penny stocks and invest in a considerable amount of them (minimum a (few) hundred dollars, I would suppose). I would make no sense to buy one share of a $1 stock: a broker would charge between $5-10 for each trade (i.e., each time you buy any number of shares of a particular stock). If you wanted to buy 100 shares of a $1 stock, you'd need to give him at least $105. If you wanted to buy 1 share of a $1 stock, you'd need to give him $6. It would not make any sense.

How do you put money in the stock market or what is stock market?

Stock market is a term used to refer to any place where stocks are bought and sold. The physical place where the actual trade in stocks happens is called a stock exchange. In India, there are two main stock exchanges - Bombay Stock Exchange or the BSE and National Stock Exchange or the NSE.

Traditionally, you or your broker had to be present on the floor of the exchange to buy or sell stocks. These days, however, people make use of online stock trading platforms for this purpose. Many companies offer online stock trading platforms where investors can buy and sell stocks.

How do you get money from investing in stocks?

okay lets say when you invest in a stock it is 1.00 per share. you invest in 30 shares. when you sell the 30 shares the value is 2.00. you just made 30.00.

What is stock market investing?

Stock Market investing refers to the action wherein an investor buys shares, mutual funds and other equity/stock market products using his money. It could be through a direct trading account or through a portfolio management company.

Stock market investing is not easy because, there are a lot of chances of us losing our hard earned money if the price of the product we buy goes down heavily. Hence we should be cautious when it comes to buying stock market related products.

Contrasting why are investments in stocks and bonds riskier than saving money at a bank?

Because the price of a stock varies every minute of a trading day and it may go up or down based on the market sentiment and the company's performance. Your investment may lose value heavily in case of a market crash and hence they are much riskier when compared to Saving money in a bank