Hedge Fund, Managed Futures, Accomondation Fund

Investment Type

 

 

Generic Information on Investment/Financial Products

 

1.Types of Investment funds
Open/closed ended Fund
Money Market Fund
Bond Fund
International Bond Fund
High Yield Bond Fund
Emerging Market Bond Fund
Equity Fund
Global Fund
Regional Fund
Single Market Fund
Theme Fund
Capital Guaranteed Fund
Hedge Fund

 

2-1 Common Stock
Common shares represent ownership of a company. As owners, common shares normally have the right to elect directors and to vote on certain major corporate decisions. They are also entitled to share in any residual assets of the company if it is wound up.
Common shares are normally traded on stock exchanges, ATS or in over-the-counter markets between dealers. For some common shares however there may be little or no market and/or the shares may be subject to restrictions on resale.

 

2-2 Restricted Voting Shares
Restricted voting shares represent ownership, like common shares, but offer holders restricted or no

2-3 Preferred Shares
Preferred shares typically give holder the right to receive a fixed dividend before any dividends can be paid to the company's common shareholders. Preferred shareholders are also entitled to a portion of the residual assets of the company if it is wound up. Holders often do not have voting rights, but in many cases are offered special features such as the right to redeem their shares at certain times or convert them into common shares at a predetermined price.

 

3 Fixed-income securities

3-1 Bonds
Bonds are evidence of a loan by the investor to the government or company that issues the bond. The issuer generally promises to pay a specified rate of interest to the bondholder and to repay a certain amount (the face value of the bond) at maturity. Bonds may be sold at prices higher or lower than their face value. Corporate bonds are typically secured by a pledge of specific assets. Some bonds offer holders the right to convert their bonds into common shares.

 

3-2 Debentures
Debentures are similar to bonds, but typically not secured by the pledge of specific corporate assets. They may, however, be secured by a 'floating charge' on the issuer's assets generally.

 

3-3 Treasury Bills (T-bill)
Treasury bills are short-term (less than one year to maturity) debt securities issued by the federal and some provincial governments. They do not pay interest but instead are sold at a price below their value at maturity. T-bills are issued by the government regularly and are typically sold in large denominations.

 

4 Unit Trust
Unit trust represents interests in the net assets and net income of a trust. These trusts are generally set up to invest in assets such as real property (real estate investment funds), royalties from oil and gas production (royalty trusts) or the income generated from one or more businesses (income trusts). Many are designed to offer tax advantages to investors.

 

5-1 Options
Options are securities that give the holder the right to buy (a 'call' option) or sell (a 'put' option) an asset at a specific price for a specific period of time. Many options on common shares, other financial products and commodities are traded on exchanges. The holder of an exchange-traded option may sell it, exercise it to buy the underlying asset or let it expire.

 

5-2 Warrants
Warrants give the holder the right to acquire other specified securities at a specified price for a specified time. They are typically offered to investors in conjunction with the sale of another security, like a common share.

 

5-3 Rights
In the rights offering a company gives its shareholders the right to buy additional shares from the company at a specified price within a specified period of time. Rights are issued in proportion to the number of shares already owned by each shareholder.

 

6 Futures
Futures contracts are agreements in which the seller agrees to deliver to the buyer a specified quantity of an asset at a specified price on a given date. Exchange-traded futures contracts trade on standardized terms and transactions are settled by a clearing agency.
Common shares are normally traded on stock exchanges, ATS or in over-the-counter markets between dealers. For some common shares however there may be little or no market and/or the shares may be subject to restrictions on resale.

 

7 FOREX
Foreign exchange, forex or just FX are all terms used to describe the trading of the world's many currencies. The forex market is the largest market in the world, with trades amounting to more than USD 1.5 trillion every day. This is more than one hundred times the daily trading on the NYSE (New York Stock Exchange). Most forex trading is speculative, with only a few percent of market activity representing governments' and companies' fundamental currency conversion needs.
Unlike trading on the stock market, the forex market is not conducted by a central exchange, but on the ginterbankh market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the forex market is a 24-hour market.

 

Trading Forex

A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the Euro/US Dollar, or the GB Pound/Japanese Yen.). The most commonly traded currencies are the so-called gmajorsh Π EURUSD , USDJPY , USDCHF and GBPUSD .
The most important forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or gon the spoth. In practice this means two banking days.

 

Trading on Margin

Trading on margin means that you can buy and sell assets that represent more value than the capital in your account. Forex trading is usually conducted with relatively small margin deposits. This is useful since it permits investors to exploit currency exchange rate fluctuations which tend to be very small. A margin of 1.0% means you can trade up to USD 1,000,000 even though you only have $10,000 in your account. A margin of 1% corresponds to a 100:1 leverage (or 'gearing'). (Because USD 10,000 is 1% of USD 1,000,000.) Using this much leverage enables you to make profits very quickly, but there is also a greater risk of incurring large losses and even being completely wiped out. Therefore, it is inadvisable to maximise your leveraging as the risks can be very high.

 

 

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