INVESTMENTS PORTFOLIO NOTES

What is investment: The action or process of investing money for profit or material result?

Investment portfolio:
A grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual,
exchange-traded and closed-fund counter parts? Portfolios are held directly by investors and/or
managed by financial professionals

What is portfolio management?

The art and science of making decisions about investment mix and policy, matching investments to
objectives, asset allocation for individuals and institutions, and balancing risk against performance.
What is return and source of return from different investment?
1. dividend
2. interest
3. the basic on spot increase the leverage price

What is difference between capital market and money market?

Money markets are used for the raising of short term finance, sometimes for loans that are
expected to be paid back as early as overnight. Whereas the capital markets are used for the
raising of long term finance, such as the purchase of shares, or for loans that are not expected to
be fully paid back for at least a year.
Capital markets:

1.

The capital market is concerned with long term finance. The part of a financial system concerned with
raising capital by dealing in shares, bonds, and other long-term investments.

Stock markets in Pakistan:

A marketplace in which securities, commodities, derivatives and other financial instruments are traded.
The core function of an exchange - such as a stock exchange.
Term:

TRADER: A person who buys and sells goods, currency, or stocks.

Trades: The action of buying and selling goods and services.

Transaction:

An instance of buying or selling something; a business deal.

Financial dealing at market rate.
OR

An exchange or interaction between people.

Bid:
Buying
Spread' the amount by which the ask price exceeds the bid. This is
essentially the difference in price between the highest price that a buyer is willing to pay for an
asset and the lowest price for which a seller is willing to sell it.
Colors:

Red: down
Green: plus
Blue: unchanged
LCDP: last day of closing price
Market order:
A market order is an order to buy or sell a stock at the best available price.
Generally, this type of order will be executed immediately. However, the price at which a market
order will be executed is not guaranteed.

Limit order:

Because the limit order is not a market order, it may not be executed if the
price set by the investor cannot be met during the period of time in which the order is left open. Limit
orders also allow an investor to limit length of time an order can be outstanding before being canceled.
(They offer of the share price is against of market rate is called limit order)

Value/ volume:
All-commodity volume (value) or ACV represents the total annual sales volume of
retailers that can be aggregated from individual store-level up to larger geographical sets. This measure
is a ratio, and so is typically measured as a percentage.

Future contract:
Where both parties agree to buy and sell a particular asset of specific quantity and at a predetermined
price.
(Decide the price of share before purchase )

Cap and flow: upper side called cap and down side called flow
Primary market: issue of share and security is called primary market.
Secondary market: dead to its issue share is called secondary market.
Advance:

increase of share price is called advance.

Decline:

decrease of share price is called decline.

Mark to market: denoting or relating to a system of valuing assets by the most recent market price.
(The rate in which effect of profit account.)
Leverage:
In the world of finance, leverage is the use of borrowed money to make an investment and the return
on an investment.

Index creation: REATE INDEX creates a new index on the given table for the named column.
X-RATE CALCULATION:

Sharp ratio:

A measure that indicates the average return minus the risk-free return
divided by the standard deviation of return on an investment.
Return expected return
Standard deviation

1. Standardize ratio: The standardized mortality ratio or SMR, is a quantity, expressed as either
a ratio or percentage quantifying the increase or decrease in mortality of a study cohort with
respect to the general population.

Risk and return combination:

A profit from an investment is called return.

A situation involving exposure to danger is called risk.