1. INTRODUCTION TO DERIVATIVES While, trading in derivatives products has grown tremendously in recent times, the earliest evidence of these types of instruments can be traced back to ancient Greece. Even though derivatives have been in existence in some form or the other since ancient times, the advent of modern day derivatives contracts is attributed to farmers’ need to protect themselves against a decline in crop prices due to various economic and environmental factors. Thus, derivatives contracts
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Bangladesh Economic Update Bangladesh Economic Update Capital Market Capital Market October 2011 October 2011 Bangladesh Economic Update Volume 2, No. 9, October 2011 Acknowledgement: Bangladesh Economic Update is an output of the Economic Policy Unit of the Unnayan Onneshan, a multidisciplinary research centre based in Dhaka, Bangladesh. The report is prepared by a team, under the guidance of Rashed Al Mahmud Titumir. The team comprises Md. Aslam Hossain and A. Z. M. Saleh. The report is
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Introduction: Bangladesh capital market is one of the smallest in Asia but the third largest in the south Asia region. It has two full-fledged automated stock exchanges namely Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and an over-the counter exchange operated by CSE. It also consists of a dedicated regulator, the Securities and Exchange Commission (SEC),since, it implements rules and regulations, monitors their implications to operate and develop the capital market. It consists of
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is a stock of a large company that is expected to be a safe investment and will often be a dividend paying stock. 3. Bonds c. A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. b 4. Bull Market d. A bull market is associated with increasing investor confidence, and increased investing in anticipation of future price increases (capital gain). A bullish trend
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STUDIES IIT DELHI Security Analysis & Portfolio Management – SML 873 Self Study Component – II (methodologies adopted across the globe for calculating Stock Index) By: Echo Group Russian Trading System (RTS) Stock Exchange 1. Eligibility Factors 2.1. Market Capitalization 2.2.1. A stock’s weight in an index is determined by the float-adjusted market capitalization of the stock 2.2.2. Each company’s market capitalization is capped
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Business Snapshot 1.1 Hedge Funds CHAPTER 1 Hedge funds have become major users of derivatives for hedging, speculation, and arbitrage. A hedge fund is similar to a mutual fund in that it invests funds on behalf of clients. However, unlike mutual funds hedge funds are not required to register under U.S. federal securities law. This is because they accept funds only from ®nancially sophisticated individuals and do not publicly oer their securities. Mutual funds are subject to regulations requiring
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Currency Futures Introduction: Globalization and integration of financial markets, coupled with the progressively increasing cross-border flow of funds, have transformed the intensity of market risk, which, in turn, has made the issues relating to hedging of such risk exposures very critical. The economic agents in India currently have a menu of over-the-counter (OTC) products, such as forwards, swaps and options, available to them for hedging their currency risk and the markets for these are
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| | | | | | | | | | | | | | | | | | (A) | protect the clearing house (guarantor) insuring traders fulfill agreements | (B) | to help fund clearing house operations via interest earned on margin accounts | (C) | to create a mechanism of matching buyers to sellers | (D) | to create a mechanism that allows the exchange to observe price movements | (E) | both (A) and (B) | Q4 Another name for a margin is ________________ | | | | | | | | | | | | | | |
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Institutions Financial Markets * Manage flow of funds * Two major market dimensions: _________ versus _____________ markets ________ versus __________ markets * Primary Markets * Used by corporations and governments * Used to issue _______ financial instruments * Stocks * Bonds * Primary Market Transfer of Funds * Demanders of funds __________________ * Initial suppliers of funds _____________ * Secondary Markets
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1. What is mutual fund & fund Manager? Ans.: A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments and other securities. Fund manager Textbook Definition- Person who manages the money on behalf of the investors by buying/selling stock, bonds etc. Internet Definition-The person(s) responsible for implementing a fund's investing strategy and managing its portfolio
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