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INVESTMENT MANAGEMENT - Coggle Diagram
INVESTMENT MANAGEMENT
Chapter 2 : Securities Market
Securities : An instrument traded in market either debt instrument or equity instrument
2.1 Primary Market
Initial Public Offering
Sale Shares to Employees
Private Placement
Right Offering
Bonus issues
Seasonal Offering
2.2 Secondary Market
Main Market
Usually reserved for larger, more established companies
ACE Market
With strong product or service portfolio which if given more capital,would surely succeed
LEAP Market
Small and medium Enterprise (SMEs) and companies to raise funds
Reason for Listing under Bursa Malaysia
To Raise Capital
Confident
Expansion
Higher Profile
2.3 Regulatory Bodies - Bursa Malaysia
Function of Bursa Malaysia
Stock Exchange in Malaysia
Place for buying and selling securities
Provide liquidity market for investor to get capital gain
Dividend
Protects all members of Bursa Malaysia
2.5 Roles and Functions of Stock Broking Companies
Intermediary in trading the equity
Company carrying in dealing the securities
Investors appoint broker from SBC to transact the stock
Recently, most of stock broking company merged with merchant bank and discount house to be investment bank
2.4 Roles of Securities Commission :
Supervise exchange
Clearing house and central depositories
Regulates all matters related to the capital
Regulate the merger and take over of company
Chapter 1 : Introduction to Investment
1.1 Investment: Purchasing financial instruments or other assets to get some kind of return with certain risk involved and at the essence of time.
Concept of Investment : Committing funds with the expectation of some positive return in financial form
Economics
Field of Finance
Business Management
Concept of Speculation: An investment that involved a higher level of risk and a more uncertain expected return
Speculative company
Speculative stocks
Concept of Gambling
Making a very short-term investment based on luck
1.2 Investment Goals, Process and Constraints
Investments Goals
Personal
Insurance Protection
Providing a Home
Emergency Reserve
Education
Retirement
Financial
Safety of principal
Assurance on income and financial independence
Protection against Inflation
Liquidity portfolios
Portfolio diversification
Investment Process
Meeting Investment Prerequisite
Establishing Investment Goals
Adopting an Investment Plan
Evaluating Investment Vehicles
Selecting Suitable Investment
Constructing a Diversified Portfolio
Managing the Portfolio
Investment Constraints
Financial Constraint
Phychological Constraints
Management Constraints
1.3 Investment Risk and Return Trade-Off: The higher the risk, the higher the return and the lower the risk offer relatively low returns as a reflection of their greater security
Type of investor
Risk Taker
Risk Average
Risk Neutral
1.4 Classification Systematic and Unsystematic Risks
Systematic Risk : Non-diversifiable (risk that unavoidable e.g. inflation, political
Inflation risk
Market Risk
Interest Rate Risk
Unsystematic Risk: Divrsifiable risk (unique to firm or industry). The risk can be controlled.
Business Risk
Financial Risk
Chapter 3 : Investment Instruments
3.1 Type of Assets
Real Assets : Tangible asset or physical capital that generate income
Contribute directly to the productive asstes
Produce goods of a nation are considered as real assets
Example: land, building, gold, machine
Financial Assets : Intangible assets or claims that organization sells to finance their project
Refer to claim that organisation sell to finance their projects (legal document)
Example: Stocks & Bonds (intagible)
3.3 Investment Alternatives
Investment in Financial Assets
Securities
Savings
Unit Trust Funds
Derivatives Securities
Investment in Real Assets
Real Estate
Collectibles
Gold