INVESTMENT
In subject of Finance, investment is referred to as putting money into something with an expectation to gain something from it over a long period of time. Usually the decision is supported with a detailed research and analysis of the market condition and the present economical health of the place. It involves a risk element too where one stand the chance of losing the money they have invested and not gain anything from it.
EQUITY: It is a type of investment which involves an ownership in a company’s stock. In simple words, it is nothing but ownership. The number of shares you hold of a company decides the percentage of your ownership in the company’s profits as well as losses. For example, a company has a total of thousand shares at disposal out of which you own ten, then this makes you 1% owner of the business and you will get your share in the form of dividends. But, just as you will gain of the company profits, similarly, you will also go down if the company runs in losses. The risk element is always there. There are a number of perks and advantages if you are an equity shareholder of a company like, you get the right to vote, share profits as well as claim assets if the company goes bankrupt and decides to sell its assets.
COMMODITY SEGMENT: A commodity market is a market that trades in primary economic sector rather than manufactured products. Soft commodities are agricultural products such as Cotton, Coriander, Jeera etc. Hard commodities are mined, such as gold, silver, copper and oil etc. The sale and purchase of the commodities are always done through contracts.
CURRENCY: Money in any form is referred to as currency. It is a medium of exchange and circulated by the banks. Every country has a different currency and different values attributed to it. It is controlled by the Government and each type has limited boundaries.
MUTUAL FUND: Mutual Funds have become highly popular since the last two decades in the world of investment. Today, it has almost become a part and parcel of our financial plan for life. This concept basically includes money invested from many investors to purchase securities. You can think of mutual funds as a company that brings together a lot of investors who invest their money in stock, share and various bonds of the company. You can earn through mutual funds in the form of dividends.
FIXED DEPOSIT: Also known as fixed deposits, are provided by banks to account holders at higher rates of interests than regular savings accounts. They are considered as the safest form of investments.
BONDS: Are a type of debt investment where the lender loans money to an entity. Usually a corporate, the entity lends money on a fixed interest for a fixed period of time. Bonds are also sometimes referred to as fixed-income securities.
INITIAL PUBLIC OFFERING(IPO): Initial Public Offering is a type of public offering where stocks of a company are sold to the general public. This tool is used by private companies to transform into public company. Done on based of securities exchange, this financial is commonly used by companies to raise expansion capital.
