inf Hanoffens ...
t1 content : Equestion paper has
spaces
for answers and calculations]
Component 1 :
nvestment concepts heading
:
Component JSE
subheading
:
2
Component 3 :
fundamental
analysis key concepts
·
·
definition
·
t2 content : Equestion paper has
spaces
for answers and calculations] important info
Component 1 :
nvestment concepts
Component JSE
:
2
Component fundamental
analysis
:
3
Component
:
Technical
4
analysis
Component s Trading
:
shares on JSE
Component Risk and
:
6 return
Word list :
SH : Shareholders
MP :
market
price
CV : value
carrying
CP : cost
price
number
:
NCL : non-current liabilities
CL : current liabilities
NCA : non-current assets
CA : current assets
OS :
Ordinary share
SFP : of financial
statement
position
SPL : of
statement
profit and loss
,Chapter 1 : Investment
concepts
gambling no
knowledge of outcome of decision investments reasonable return less
risky
= =
,
[5 ]
speculation of returns, but
very risky
term :
long
·
term
promise great years
=
term : short term [1-2 years] motive :
require reasonable return
: considerable
motive
require return
Investment objectives
for substantial
·
speculation buying assets ;
goal to sell it
profit within
year ; high risk
=
a
income
buy asset with aim to
generate income
=
capital growth purpose
-
protect purchasing power of capital
take-overs and 2nd
mergers buy a
neighbouring farm
=
material distribution channel-set of for
control over raw or
interdependent organisations involved in
process
of
making product available
consumption
Important concept
Financial instrument =
all assets or units of tradeable capital
of
tradability value
paper ability to transfer ownership
financial financial
representing corporation creditor relationship with
governmental body rights ownership
securities instruments investments in
corporation
owner to
=
,
.
,
function of value
guarantee paper
shares small=
units of ownership that capital of
company
consists of
originated by seeking large amounts of
money
and limited
liability
share certificate document issued to shareholder , proof of share ownership
disappeared due to dematerialisations
share
purchased electronically ,
shares are held in electronic record
Bonds and
gilts
bonds =
tradeable debt instruments issued by corporations debentures ,
governments
or
quasi-government institutions
gilts
· Bonds characteristics :
loans future date fixed interest
paid date
periodically
to
maturity owner
on
market
price dependent on fluctuations in interest rates
issued
gilts-debt instruments
by state semi-state institutions
,Securities exchange
Company creating opportunity for potential buyers and sellers of
security to come
together for
trading
Johannesburg Stock
Exchange JSE Cape Town Stock
Exchange CTSE
A2X
Strate and dematerialisation
facilitated stockbroker deal transferred between and seller
trading buyer
· JSE is
securities on =
by is struck =
ownership
Strate
Pty Ltd
Share electronic settlement
totally system
·
transactions electronic :
strate ·
South Africa's central (CSD) works
together with central (SDP's
securities
depository securities
depository participants
Dematerialisation
·
converted share certificate to electronic records in 2001
Money market
total market of all short term funds traded loans
example funds
· :
short-term market
,
money
surplus shortfall influences market interest rates
money
or
Capital market
of
long-term funds traded example : fixed
deposits mortgages debentures
·
market , ,
influences
long term interest rates
Primary market
market where listed securities for 1
companies &
governments sell time
initial issue value normal value value
par
=
after
companies act states 1
May 2011 no
par value
=
issue
average price
additional capital required additional shares issued
through rights issue
=
info of shares and invite subscribe
prospectus on new issue to
:
Secondary market
new shares issued and
bought by investors investors can
keep shares or trade them
trading takes
place
market
price
= determined
by supply & demand
, Share
price
·
pricetraded onsecondary market or
market
a
market price = last traded
price
Blue chips
shares of
ordinary companies with elite investment status
sound dividend
good reputation over
long-term by maintaining
stable a profit and
history and
healthy growth prospects
Portfolio
composition of investments
·
consists of shares, bonds,
person's properties
Diversification
·
invest in different · include instruments with different risk profiles in
portfolio
companies or sectors
Risk
actual returns realised investment be lower than expected return
may
on
Institutional investors
of
enterprises investing large
amounts
capital
Unit trust
of of from individuals and and invest diversified portfolio
pooling money-collect small amounts
savings companies large amount in
trained
advantage
:
managed by investment
professionals
Listing
after
right company
obtains to trade shares on stock
exchange prerequisites are met
listed business
according to
primary activities
Pre-listing statement =
document issued if
company complies
with all
requirements for
listing on stock
exchange
of info
source about
proposed listing
Arbitrage
2
product traded on markets
Buy product on
cheaper market and sell on more
expensive market
risk free profit made from short-term
price differences
t1 content : Equestion paper has
spaces
for answers and calculations]
Component 1 :
nvestment concepts heading
:
Component JSE
subheading
:
2
Component 3 :
fundamental
analysis key concepts
·
·
definition
·
t2 content : Equestion paper has
spaces
for answers and calculations] important info
Component 1 :
nvestment concepts
Component JSE
:
2
Component fundamental
analysis
:
3
Component
:
Technical
4
analysis
Component s Trading
:
shares on JSE
Component Risk and
:
6 return
Word list :
SH : Shareholders
MP :
market
price
CV : value
carrying
CP : cost
price
number
:
NCL : non-current liabilities
CL : current liabilities
NCA : non-current assets
CA : current assets
OS :
Ordinary share
SFP : of financial
statement
position
SPL : of
statement
profit and loss
,Chapter 1 : Investment
concepts
gambling no
knowledge of outcome of decision investments reasonable return less
risky
= =
,
[5 ]
speculation of returns, but
very risky
term :
long
·
term
promise great years
=
term : short term [1-2 years] motive :
require reasonable return
: considerable
motive
require return
Investment objectives
for substantial
·
speculation buying assets ;
goal to sell it
profit within
year ; high risk
=
a
income
buy asset with aim to
generate income
=
capital growth purpose
-
protect purchasing power of capital
take-overs and 2nd
mergers buy a
neighbouring farm
=
material distribution channel-set of for
control over raw or
interdependent organisations involved in
process
of
making product available
consumption
Important concept
Financial instrument =
all assets or units of tradeable capital
of
tradability value
paper ability to transfer ownership
financial financial
representing corporation creditor relationship with
governmental body rights ownership
securities instruments investments in
corporation
owner to
=
,
.
,
function of value
guarantee paper
shares small=
units of ownership that capital of
company
consists of
originated by seeking large amounts of
money
and limited
liability
share certificate document issued to shareholder , proof of share ownership
disappeared due to dematerialisations
share
purchased electronically ,
shares are held in electronic record
Bonds and
gilts
bonds =
tradeable debt instruments issued by corporations debentures ,
governments
or
quasi-government institutions
gilts
· Bonds characteristics :
loans future date fixed interest
paid date
periodically
to
maturity owner
on
market
price dependent on fluctuations in interest rates
issued
gilts-debt instruments
by state semi-state institutions
,Securities exchange
Company creating opportunity for potential buyers and sellers of
security to come
together for
trading
Johannesburg Stock
Exchange JSE Cape Town Stock
Exchange CTSE
A2X
Strate and dematerialisation
facilitated stockbroker deal transferred between and seller
trading buyer
· JSE is
securities on =
by is struck =
ownership
Strate
Pty Ltd
Share electronic settlement
totally system
·
transactions electronic :
strate ·
South Africa's central (CSD) works
together with central (SDP's
securities
depository securities
depository participants
Dematerialisation
·
converted share certificate to electronic records in 2001
Money market
total market of all short term funds traded loans
example funds
· :
short-term market
,
money
surplus shortfall influences market interest rates
money
or
Capital market
of
long-term funds traded example : fixed
deposits mortgages debentures
·
market , ,
influences
long term interest rates
Primary market
market where listed securities for 1
companies &
governments sell time
initial issue value normal value value
par
=
after
companies act states 1
May 2011 no
par value
=
issue
average price
additional capital required additional shares issued
through rights issue
=
info of shares and invite subscribe
prospectus on new issue to
:
Secondary market
new shares issued and
bought by investors investors can
keep shares or trade them
trading takes
place
market
price
= determined
by supply & demand
, Share
price
·
pricetraded onsecondary market or
market
a
market price = last traded
price
Blue chips
shares of
ordinary companies with elite investment status
sound dividend
good reputation over
long-term by maintaining
stable a profit and
history and
healthy growth prospects
Portfolio
composition of investments
·
consists of shares, bonds,
person's properties
Diversification
·
invest in different · include instruments with different risk profiles in
portfolio
companies or sectors
Risk
actual returns realised investment be lower than expected return
may
on
Institutional investors
of
enterprises investing large
amounts
capital
Unit trust
of of from individuals and and invest diversified portfolio
pooling money-collect small amounts
savings companies large amount in
trained
advantage
:
managed by investment
professionals
Listing
after
right company
obtains to trade shares on stock
exchange prerequisites are met
listed business
according to
primary activities
Pre-listing statement =
document issued if
company complies
with all
requirements for
listing on stock
exchange
of info
source about
proposed listing
Arbitrage
2
product traded on markets
Buy product on
cheaper market and sell on more
expensive market
risk free profit made from short-term
price differences
