StudentShare solutions
Triangle menu

Finance College - Essay Example

Not dowloaded yet

Extract of sample
Finance College

Thus, the returns from fixed income securities remain unchanged over the period for which they are invested in. Beyond the period or before the period of investment, the rates would be prone to vary.
Changes in the reserve ratio (CRR) stipulated by the Reserve/Federal Bank lead to changes in the rate of interest/ returns for the investor. A shift in the global economy and change in the CRR of the banks in the country which has a dominant role in the global economy can influence the interest rates in other countries too.
An investor has a choice of investing in various assets over time. He can invest in movable assets like securities, stocks, fixed deposits and immovable assets like land, buildings etc. Each class of investment has its own risks and returns. The returns from each asset would also vary from time to time, depending on various socio-political, economic and geographical factors.
The capital markets offer a wide range of investment options like shares, stocks, debentures, fixed income securities etc. While shares and stocks are high risk-high return instruments, bonds and fixed income securities are safer modes of investment. Capital markets typically tend to move in cycles or phases, called bull and bear phases . A bull market is one in which the majority of the shares move up and there is ample capital appreciation for the investor. A bear phase is one in which there is a negative trend and the prices of shares fall. There is erosion in value of the holding and the investor might not even get back his initial investment amount. The returns in a bull market have been known to be as high as 500-1000% in some cases, while the losses in a bear market have forced several investors to go bankrupt and sell whatever other assets they were holding as investments. Many a times, the economy of the country itself has had to undergo a substantial loss due to the fluctuations in the capital markets.

Fixed income securities are one of the most innovative and dynamic instruments evolved in the financial system ever since the inception of money. Based as they are on the concept of interest and time-value of money, Fixed income securities personify the essence of innovation and transformation, which have fueled the explosive growth of the financial markets over the past few centuries.
http://sify.com/finance/fullstory.phpid=14201529, accessed on 27th Aug.,2008.

A wise investor would have a combination of investments which give fixed and variable returns over a period of time. The risks involved in investing in stocks are offset by the returns from fixed income securities. Depending on the disposable income, age of the investor and risk-taking capacity of the investor, a financial planner would ...Show more

Summary

Don't put all your eggs in one basket" is an oft-quoted proverb. Probably, much before Mark Mobius, Peter Lynch and other financial gurus had made their debut on this earth, the wise old men of yore had thought, and thought hard to put together the said proverb.
Author : egleason
Finance College Essay essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Finance College Essay"
with a personal 20% discount.
Grab the best paper

Related Essays

College Entrance and Personal Essay
More than 10 years later, I'm coming back to finish what I had started. Financial challenges were the main reason for my dropping out in the spring of 1996. We all know about the costs of university education, and during those times, money was tight. To remedy this, I went on to find work in the mortgage industry.
2 pages (500 words) Essay
Personal Finance Concepts College Essay
Current assets comprise of liquid assets such as cash, marketable securities, receivables and inventories. On the other hand, fixed assets include property, plant and equipment intended to be used for the operations of the company. Intangible assets, which include patents, trademarks and reputation among others, may also be lumped as an asset account.
2 pages (500 words) Essay
Corporate Finance College Essay
The Company has access to a large inventory of hotel rooms; has developed its own technology, which searches for hotel inventory to be used by travel agents and Internet portals, and owns or has agreements with travel agents for the distribution of its inventory.
7 pages (1750 words) Essay
International Corporate Finance College Essay
My recommendations will be made after careful study and analysis of the Chinese market. China, (People's Republic of China), is situated in eastern Asia, bounded by the Pacific in the east. The third largest country in the world, next to Canada and Russia, it has an area of 9.6 million square kilometres, or one-fifteenth of the world's land mass.
8 pages (2000 words) Essay
Money, Banking & Finance Essay
In other words, the instinct of the Fisher theory of interest rates will be proved. This will be done by researching various evidences both on theoretical aspect as well as practical aspects. Fisher has his own way of
8 pages (2000 words) Essay
College essay
People that complete a college degree have better higher paying jobs. During my tenured in high school I demonstrated the ability to work with other classmates and provide support to me teammates during group assignments. I always pay close attention
2 pages (500 words) Essay
College Essay
It is with belief and confidence that I have settled on your institution as the perfect match for my ambitions, after researching on universities. As well as the qualities that the University of Wisconsin possesses, I also believe that I will flourish as a
2 pages (500 words) Essay
College essay
for any toddler and I got good things such as toys, got to go to Disneyworld (or at least the version of it then) and even attended a private kindergarten and middle school. All this however tumbled down with the separation of my biological parents. My father was the sole bread
2 pages (500 words) Essay
College Essay
The environment is constantly changing, and there is global increase daily. It is another challenge; therefore, it is important that people are equipped with skills that will enable them operate effectively in this environment. Effective leadership is another challenge
3 pages (750 words) Essay
Working while being a college student is bad
The government offers alternative financial aid that is to be paid after college. However, work study is prevalent, as approximately 80% of students that are enrolled in the institutions of higher learning
3 pages (750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation