In Financial Term, Investment is the commitment of money or acquiring assets like bonds, stocks, golds, real estate anything else in financial value to generate greater value, or appreciate value, or generate regular income or profits later. The assets can be acquired at once or at regularly systematic way.
A portfolio is a collection of Assets to minimize the risks associated with a single investment. The idea of portfolio investment is to diversify the risk of one asset to another asset.
An Initial Public Offering (IPO) is a condition of public issue of securities (commonly shares) by a company to sell those to the public for very first time, allowing it to be listed and traded on a stock exchange.
A Follow-on Public Offering (FPO), on the other hand, happens after a company is already publicly listed. In an FPO, the company issues additional shares to raise more funds, and this can be structured in either a dilutive or non-dilutive way.
NEPSE Acronym for Nepal Stock Exchange, that is only one stock exchange for trading of listed securities in Nepal. The investors can buy and sell the securities of different companies listed on NEPSE. It is fully government owned organization in Nepal.
The Central Depository and Clearing System in Nepal. It works as the clearing and settlement institution and run the services related to dematerilization of securities in Nepal.
The OTC is the Over The Counter Market or the market for securites those are not listed in NEPSE.
Rating Companies are the organization those serve the services related to the rating of organization, public issues, financial position, and securites to be issued.
Investment Companies are the holding company those holds the assets in form of portfolio and holds them according their investment strategy to gain compounding and greater returns in future. The investment companies has professional management regarding their portfolio management. They themselves develope various subsidiary companies in various sectors for long term business growth.
The Basic Benefits of Investing in Investment Company:
- Long Term Focus
- Portfolio Management
- Expert Management
- Growth Potential
- Risk Minimization
Broker, Mutual Funds, BFIs, Regulators, Government, Dealers, Investors, Traders, Operators etc.
These participants works as differently in Market Such as:
Broker: Faciliates primarily buy sell service to their clients.
Mutual Funds: They participate as the institutional investors in market. These are the schemes to retail investors and collects small amount of funds and invests the funds in Market.
BFIs: Banks and Financial Institutions, they primarily focuses on providing the debt funds to the other investors they also invest some of their funds inMarket as well.