Investment Analyst
investments analysts are finance professionals employed by banks, stockbrokers, investment companies, mutual funds, and unit trusts to advise them on stocks and investments. They study the market by using technical and fundamental method of analysis give their recommendations and advises.
Investment Club
A group of retail investors who pool some of their money and make joint investments. Investment clubs attempt to enable individuals to become individual investors by pooling their funds in small groups and collectively deciding how to invest the money. Like-minded investors come together to make investments based upon the input and research of the entire group, often providing a more complete foundation for subsequent decisions. The advantages are that more than one mind is engaged in taking buy and sell decisions, and the low risk each member carries. These clubs also help build up investment consciousness among small investors.
Investment Company
A firm which uses, not its own money, but the pooled funds of individuals, to buy and sell shares for collective benefit is known as investment company .
Investment Horizon
The length of time a sum of money is expected to be invested. An individual’s investment horizon depends on when and how much money will be needed, and the horizon influences the optimal investment strategy. In general, the shorter the investor’s horizon, the less risk he/she should be willing to accep. A share bought with the objective of selling it off at a rise does not fall within its scope. Perhaps the horizon can be said to start after one has held a share for one year which, incidentally, is the minimum period to qualify for long – term capital gains.
Investment Letter
When shares are privately placed, there is a written agreement between seller and the buyer which stipulates that the shares are bought for investment purposes only and the these are not to be resold publicly for short – term gains.
Investment Trust
Actually a company, not a trust in the strict sense, it invests shareholder’s funds in a wide variety of securities, carefully chosen by investment analysts, with the objective of providing capital appreciation and income. The risk is diversified, unless the company publicly asserts that its policy is aggressively growth – oriented.
The reason these should be called companies is that investors re their shareholders, whereas in a trust proper, such as the Unit Trust and India , investors are unit holders, and have no say in policy matters.
For the small investor, these companies, owing to their professional expertise, perhaps offer better opportunities for gains than individual hunch.
Investor Protection
Theoretical measures to ensure that investor interest is protected by regulating the promotion of new companies by scrutinizing the claims they make in their prospectuses meant of the public, making mandatory the publication of financial results at regular intervals, their audit, and their control by the stock exchange. The office for investor protection is the SEBI or SECURITIES AND EXCHANGE BOARD OF INDIA which is supposed to deal with erring companies. Another supposed – to – help office is the grievance cell attached to each stock exchange. The Indian investor, however, remains slaughter chicken, s ever.