, ESHM-isHAAAAK-E.IHE.NET#*A =
EHAkEEA0tHE INVESTMENT SPECULATION
TERM
longterm 154AM ] Short term 11-2 Years @ the most ]
>
GAMBLING :
no knowledge of outcome of decision 1.
> a motive Require reasonable return Require considerable return
SPECULATION :
promise of great returns but v. risky
>
INVESTMENTS :
reasonable return ,
less risky
INVESTMENT OBJECTIVES
> [property ,
stocks , options , cattle ]
> SPECULATIONS :
buying asset w/ goal to sell for a substantial profit w/ in 1 year / HIGH RISK ]
> INCOME :
buy asset w/ aim to generate income / property -
rental shares -
dividend fixed deposit -
interest ]
> CAPITAL GROWTH :
buy house R 500000 t sell after 10 yrs for R 5.5m / R5 mil capital growth ]
→
purpose =
protect purchasing pwr of capital
>
TAKE OVERS -
+ MERGERS :
buy 2ⁿᵈ neighbouring farm farm more effectively
CONTROL OVER RAW MATERIAL DISTRIBUTION CHANNEL set of interdependent organizations involved in process of making product / service avail for use / consumption
> :
a .
Financial instruments t securities :
blue chips corporate actions :
shares ,
bonds + gilts capitalisation / bonus shares / issue
securities exchange Portfolio diversification
,
+ risks corporate actions :
subdivisions /stock splits / + Share consolidation
Strate dematerialisation
,
institutional investors + Unit trust corporate actions :
rights issue cum rights,
IMPORTANT CONCEPTS
ex rights Underwriting
.
+ share buy back-
1-
capital vs. Money market listing +
arbitrage corporate actions :
TERMINOLOGY
share buy back
pre listing statements
-
-
primary us .
Secondary market bull us .
bear markets fundamental us .
technical analysis
bulls bears + Stags
prospectus ,
Share Price Market Price corporate actions dividends ; interim: -
final -
,
annual saving financial investment economic investment
, ,
,
dividends , cum / ex dividend
FINANCIAL INSTRUMENTS :
collective terms all assets / units of capital tht tradable
◦
: =
emphasis tractability of the value paper / ability to transfer ownership ]
•
=
on
FINANCIAL SECURITIES :
-
financial instruments tht represent :
◦
investment as owner in Corporation I stock) ,
or
•
creditor relationship w/ Corporation / gov body ( bond )
.
,
or
•
rights to ownership ( option )
emphasis On guarantee function other assets ie ability of value papers to serve as guarantee / security w/ applying for loans overdraft facilities etc
=
+ . .
,
}
>
securities under equity -
based financial instruments : shares
normally :
all stocks + bonds =
serve as security + non -
traceable paper
9 life insurance policies t assets [ property ]
>
securities under debt -
based financial instruments :
bonds
debenntures
gilts
issued by corp gov / quasi gov institutions
→
traceable debt instruments . .
-
.
9
'
☒⑥ ADDS Gti KISS issued by state / semi institutions
'
SHARE§ capital of Consists of *
state
'
:
Sml units of ownership tht the a comp .
>
debt instruments -
◦
ORIGINATED DUE TO :
seeking lrg ants of money limited liability BOND CHARACTERISTICS :
LOANS tht =
repaid on future date ( maturity date )
SHARE CERTIFICATES : [ issued to purchaser of shares ] FIXED INTEREST =
paid periodically to owner
I. document issued to shareholder [ by company ] as proof of ownership MRKT PRICE dependent on fluctuations in int . rates
•
disappeared due to dematerialisation GILTS EG :
RSA 's t Eskom gilts
s shares =
purchased electronically + held in electronic record
EHAkEEA0tHE INVESTMENT SPECULATION
TERM
longterm 154AM ] Short term 11-2 Years @ the most ]
>
GAMBLING :
no knowledge of outcome of decision 1.
> a motive Require reasonable return Require considerable return
SPECULATION :
promise of great returns but v. risky
>
INVESTMENTS :
reasonable return ,
less risky
INVESTMENT OBJECTIVES
> [property ,
stocks , options , cattle ]
> SPECULATIONS :
buying asset w/ goal to sell for a substantial profit w/ in 1 year / HIGH RISK ]
> INCOME :
buy asset w/ aim to generate income / property -
rental shares -
dividend fixed deposit -
interest ]
> CAPITAL GROWTH :
buy house R 500000 t sell after 10 yrs for R 5.5m / R5 mil capital growth ]
→
purpose =
protect purchasing pwr of capital
>
TAKE OVERS -
+ MERGERS :
buy 2ⁿᵈ neighbouring farm farm more effectively
CONTROL OVER RAW MATERIAL DISTRIBUTION CHANNEL set of interdependent organizations involved in process of making product / service avail for use / consumption
> :
a .
Financial instruments t securities :
blue chips corporate actions :
shares ,
bonds + gilts capitalisation / bonus shares / issue
securities exchange Portfolio diversification
,
+ risks corporate actions :
subdivisions /stock splits / + Share consolidation
Strate dematerialisation
,
institutional investors + Unit trust corporate actions :
rights issue cum rights,
IMPORTANT CONCEPTS
ex rights Underwriting
.
+ share buy back-
1-
capital vs. Money market listing +
arbitrage corporate actions :
TERMINOLOGY
share buy back
pre listing statements
-
-
primary us .
Secondary market bull us .
bear markets fundamental us .
technical analysis
bulls bears + Stags
prospectus ,
Share Price Market Price corporate actions dividends ; interim: -
final -
,
annual saving financial investment economic investment
, ,
,
dividends , cum / ex dividend
FINANCIAL INSTRUMENTS :
collective terms all assets / units of capital tht tradable
◦
: =
emphasis tractability of the value paper / ability to transfer ownership ]
•
=
on
FINANCIAL SECURITIES :
-
financial instruments tht represent :
◦
investment as owner in Corporation I stock) ,
or
•
creditor relationship w/ Corporation / gov body ( bond )
.
,
or
•
rights to ownership ( option )
emphasis On guarantee function other assets ie ability of value papers to serve as guarantee / security w/ applying for loans overdraft facilities etc
=
+ . .
,
}
>
securities under equity -
based financial instruments : shares
normally :
all stocks + bonds =
serve as security + non -
traceable paper
9 life insurance policies t assets [ property ]
>
securities under debt -
based financial instruments :
bonds
debenntures
gilts
issued by corp gov / quasi gov institutions
→
traceable debt instruments . .
-
.
9
'
☒⑥ ADDS Gti KISS issued by state / semi institutions
'
SHARE§ capital of Consists of *
state
'
:
Sml units of ownership tht the a comp .
>
debt instruments -
◦
ORIGINATED DUE TO :
seeking lrg ants of money limited liability BOND CHARACTERISTICS :
LOANS tht =
repaid on future date ( maturity date )
SHARE CERTIFICATES : [ issued to purchaser of shares ] FIXED INTEREST =
paid periodically to owner
I. document issued to shareholder [ by company ] as proof of ownership MRKT PRICE dependent on fluctuations in int . rates
•
disappeared due to dematerialisation GILTS EG :
RSA 's t Eskom gilts
s shares =
purchased electronically + held in electronic record
