Got a tricky question? Receive an answer from students like you! Try us!

Pesonal invenstmnt in UK - Is it a science or a matter of good fortune - Essay Example

Only on StudentShare
Masters
Author : charleswest
Essay
Finance & Accounting
Pages 20 (5020 words)

Summary

Personal Investment in UK – Is It a Science or a Matter of Good Fortune Table of Contents Introduction 4 Evaluation: It is a Science 5 Modern Portfolio Theory (MPT) 5 Capital Asset Pricing Model (CAPM) 6 Arbitrage Pricing Theory (APT) 7 Black-Scholes (BS) Model 7 Rough Set Theory (RST) 8 Financial Services Authority (FSA) 9 Matter of Good Fortune 10 Different Types of UK Investment 10 Individual Saving Accounts Allowance 10 Investment Trusts 11 Unit Trusts 12 Open Ended Investment Companies 12 Stocks and Shares 13 Fixed Income Securities 13 Property 13 Liquidity Funds 14 Balanced Portfolio 14 Portfolio Management 15 Difficulties Associated with Portfolio Management 16 Transaction cost 16 Ta…

Extract of sample
Pesonal invenstmnt in UK - Is it a science or a matter of good fortune

Participation by the people in the investment activity of United Kingdom is a long history. Personal investment is done by the individual. Personal investing constitutes an important part in personal financial investment. Personal investment is done for future expenditure plans such as to buy real estate, pay for family expenses and also to pay off outstanding loans. Now, the question is how an individual invest. He may begin to build up his financial assets in order to pay for long term financial goals. He may want assets accessible to make down payments on housing and may also want to guarantee that human capital is low risk by buying disability insurance and term insurance (Schewart, 1999, pp.1-2). Personal Investment is done in order to create a safe financial cushion which will be used in after years. ...
Download paper

Related Essays

Promoting good health
Good health is important to every human being because it provides a way for someone to live out their life in a positive way. In Paulina's case, she is doing everything that is needed for her to stay healthy.For some reason, she acquired appendicitis, and this is something that the doctors would have to understand in order to make sure she stays healthy. Most likely, Paulina had symptoms of appendicitis that she did not pay attention to because she thought it was indigestion or something. According to The National Digestive Diseases Information Clearinghouse (NDDIC) there can be many causes of…
14 pages (3514 words)
Does the mixture of debt and equity in a firm's financial structure matter? Why?
Primarily the equity shares are issued at ‘Par value’ but subsequent issues are made at premium. The company can finance its capital and revenue expenditure through the issuance of these shares or through its internally generated funds. The shareholder’s equity, as presented in the statement of financial position, comprises of retained earnings and issued and subscribed shares. Retained earnings are the accumulated profits from the period the company was incepted. These retained earnings or internally generated accumulated funds can also be utilized by the company in financing its…
8 pages (2008 words)
Does it matter whether or not firms pay dividends? Why?
Those companies use that undistributed earnings to reinvest in the business and thereby increase the size of the organisation. Evidently, this practice may adversely affect the financial interests of company shareholders. However, the current market position of the firm particularly influences the implications of non-payment of dividends on the business. This paper will specifically discuss what happens whether or not firms pay dividends. Why some companies pay dividends while some others do not? Undoubtedly, a company tends to pass its earnings to shareholders as remuneration for their…
6 pages (1506 words)
Does it matter whether or not firms pay dividends? Why?
According to the MM hypothesis, market value of a company determines the market value of assets that the company has and cash flow of the company. Therefore, if total payout increases then shareholders have to fill up gap and generally it can be made up by issuing new shares. However, if the company wants to unchanged the dividend payout then dividend payout will decrease as no of issued share increases. Therefore, the shareholders can repurchase shares to get the same money back as dividend. In this way, it can be said that increasing dividend payment may reduce shareholders’ gain. Before…
6 pages (1506 words)
New UK GAAP
The need for a global reporting standard has gained more importance for small and medium sized organizations where the accountability of managers towards the investors are generally less transparent compared to large multi-national companies. Over the years such transparency might lead to mistrust between the owners and the managers leading to an Agency problem. Even though the advantage of general sets of international reporting standards are acknowledged, there are a certain implementation challenges at the international and domestic level if the objective of a harmonised and enhanced…
6 pages (1506 words)
Did Credit Rating Agencies do good work?
This part of the study suggested why the credibility of credit rating agencies came into the scrutiny. Following that, a detailed study was done regarding the agency costs and its effects on the value of a company. It was seen that, agency cost mostly arises due to the principal agent problem. The principal agent problem is nothing but the situation that is characterized by a conflict of interest between the principal and the agent who are the managers and the shareholder respectively. This conflict of interests leads to agency costs and thereby decreases the value of a firm. Thereafter, the…
14 pages (3514 words)
Did Credit Rating Agencies do good work?
Data is collected from secondary sources considering the importance of statistical data for reaching a conclusion. A proper analysis and evaluation is done to understand the findings of the study and indicate the key factors underlying the report. Introduction-Background The essential role of the Credit Rating Agencies have been particularly highlighted during the period of global economic crisis in 2008 which affected even the strongest economies in the world. The Credit Rating Agencies essentially served the main purposes of mitigating the asymmetrical information system existing in the…
10 pages (2510 words)