Scribd Logo
Upload

Welcome to Scribd!

  • 28 views

    Security and Portfolio Management: Facilitator-Praveen Kumar

    Uploaded by

    Sankaran Manickam
    The document discusses various investment concepts including the objectives, process, types of securities like stocks, bonds and debentures, and sources of investment information. It describes equity shares, preference stocks, debentures, and bonds as well as investment alternatives that range from financial securities to traditional non-security assets. The overall goal of investment is to balance returns with reducing risk.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Security and Portfolio Management: Facilitator-Praveen Kumar

    Uploaded by

    Sankaran Manickam
    28 views20 pages
    The document discusses various investment concepts including the objectives, process, types of securities like stocks, bonds and debentures, and sources of investment information. It describes equity shares, preference stocks, debentures, and bonds as well as investment alternatives that range from financial securities to traditional non-security assets. The overall goal of investment is to balance returns with reducing risk.

    Original Title

    sapm

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses various investment concepts including the objectives, process, types of securities like stocks, bonds and debentures, and sources of investment information. It describes equity shares, preference stocks, debentures, and bonds as well as investment alternatives that range from financial securities to traditional non-security assets. The overall goal of investment is to balance returns with reducing risk.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views20 pages

    Security and Portfolio Management: Facilitator-Praveen Kumar

    Uploaded by

    Sankaran Manickam
    The document discusses various investment concepts including the objectives, process, types of securities like stocks, bonds and debentures, and sources of investment information. It describes equity shares, preference stocks, debentures, and bonds as well as investment alternatives that range from financial securities to traditional non-security assets. The overall goal of investment is to balance returns with reducing risk.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 20

    BA 9257 SECURITY AND

    PORTFOLIO MANAGEMENT

    FACILITATOR- PRAVEEN KUMAR


    INTRODUCTION
    • Investing is an interesting activity that attracts
    people irrespective of their occupation,
    economic status, education and family.
    • The investor who is having extra cash could
    invest it in securities or it any other assets like
    gold/real estate or in banks.
    • The company like to invest their money in the
    extension of existing firm or undertake new
    firm.
    INVESTMENT - PERSPECTIVE
    • Investment is the employment of funds on assets
    with the aim of earning income or capital
    appreciation.
    • It has 2 attributes namely time and risk.
    • Economic view-
    – To the economist the investment is the net addition
    made to the nations capital stock that consists of goods
    and services that are used in production process.
    (capital stock- buildings, equipments, inventories etc )
    … contd
    • Financial investment is the allocation of money to assets
    that are expected to yield some gain over a period of time.
    – It is an exchange of financial claims such as stocks and bonds for
    money.
    – They are expected to yield returns and experience capital growth
    over the years.

    • The financial and economic meanings are related to each


    other because the savings of the individual flow into the
    capital market as financial instruments to be used in
    economic investment

    • We considered the financial instrument made on securities


    SPECULATION/GAMBLING
    Speculation Gambling
    • Speculation means • A gamble is usually a
    taking up the business very short term
    risk in the hope of investment in a game or
    getting short term gain. chance.
    • It involves buying and • Time horizon is shorter
    selling activities with than both investment
    the expectation of and speculation.
    getting profit from price • It employs a artificial
    speculation risk.
    INVESTMENT OBJECTIVES
    • The main objectives are increasing the rate of
    return and reducing the risk.
    • Other objectives are
    – Return
    – Risk
    – Liquidity
    – Hedge against inflation
    – Safety
    INVESTEMENT PROCESS
    INVESTMENT PROCESS

    PORTFOLIO PORTFOLIO
    INVESTMENT POLICY ANALYSIS VALUATION CONSTRUCTION EVALUATION

    -INVESTIBLE FUNDS -MARKET


    -OBJECTIVE -INDUSTRY
    -INTRINSIC VALUE -DIVERSIFICATION -APPRAISAL
    -FUTURE VALUE -SELECTION AND ALLOCATION -REVISION
    -KNOWLEDGE -COMPANY
    SECURITIES
    • Various types of securities are traded in the
    market.
    • Securities include shares, stocks, bonds,
    debentures etc.
    • Securities are classified on the basis of return
    and the source of issue.
    – Fixed income securities(Bonds, Debentures and
    preference shares)
    – Variable income securities(equity shares)
    SECURITIES
    • Equity shares.
    • Sweat equity.
    • Nonvoting shares.
    • Right shares.
    • Bonus shares.
    • Preference stock.
    – Cumulative preference shares.
    – Non- cumulative shares.
    – Convertible preference shares.
    – Redeemable preference shares.
    – Irredeemable preference shares.
    – Cumulative convertible preference shares.
    EQUITY SHARES
    • Equity shares are commonly referred to common stock or
    ordinary shares.
    • Share capital of a company is divided into a number of
    small units of equal value called shares.
    • Stock- bundle of shares.(it expressed in terms of money
    and not as many shares)
    • Advantages of equity shares
    – Capital appreciation
    – Limited liability
    – Free tradability
    – Tax advantages
    – hedge against inflation
    SWEAT EQUITY
    • It is a part of equity share capital.
    DEFINITION
    • Shares issued at a discount to employees and
    directors.
    • Shares issued for consideration other than
    cash for providing know how or making
    available rights in the nature of intellectual
    property rights /value addition.
    PREFERENCE STOCK
    • The characteristic of stock are hybrid in nature.
    • Some of its features resemble the bond and
    others equity shares.
    • Like the bonds their claims on the company's
    income are limited and they received fixed
    dividend.
    • In the event of liquidation of the company their
    claims on the assets of the firm are also fixed.
    DEBENTURES
    • Debentures includes debentures stock, bonds and any
    other securities of company.
    • It generally issued by the private sector companies as
    along term promissory note for raising loan capital.
    • public sector companies and financial institutions issue
    bonds.
    • Characteristic features of debentures.
    – Form(rate of interest and redemption date)
    – Interest(rate of interest is fixed at the time of issue itself which is
    known as contractual/ coupon rate of interest)
    – Redemption(repayment (principal amount) before maturity)
    – indenture
    TYPES OF DEBENTURES
    • Secured or Unsecured
    • Fully convertible debenture.
    • Partly convertible debenture.
    • Non – convertible debenture.
    BOND
    • Bond is along term debt instrument that promises to
    pay a fixed annual sum as interest for specified period
    of time.
    • Characteristic of bond
    – It have a face value. The face value called par value.
    – The bond may be issued at par or at discount.
    – The interest rate is fixed.
    – Some time the IR be variable in terms of floating rate bond.
    – Interest rate is paid annually /semi annually.
    – The interest rate is known as coupon rate.
    – Maturity date and redemption value also stated in bonds.
    – Bonds are traded in the stock market
    TYPES OF BONDS
    • Secured bonds and unsecured bonds.
    • Perpetual bonds and redeemable bonds
    • Fixed interest rate bonds and floating interest
    rate bonds
    • Zero coupon bonds
    • Deep discount bonds
    • Capital indexed bonds.
    INVESTMENT INFORMATION
    • International affairs.
    • National affairs.
    • Industry information.
    • Company information.
    • Stock market information.
    INVESTMENT ALTERNATIVES
    • The investment alternatives ranges from financial securities
    to traditional non security investments.
    • The financial securities may be negotiable / non negotiable.
    • Negotiable securities- transferable/it may yield variable
    income or fixed income
    – Equity shares
    – Bonds
    – Debentures
    – Vikas patras
    – Kisan vikas patras
    – Government securities
    – Money market securities
    …. contd
    • Non negotiable financial instrument- non
    transferable
    – Deposit schemes offered by the post offices
    – Banks
    – Companies
    – NBFC’S
    – PPF
    – National saving certificates.
    …contd
    • Mutual funds
    • Life insurance
    • Real estates
    • Gold ,silver, arts, property and antiques are
    non financial instruments.

    You might also like