FINANCIAL MARKET

Investing in Financial Markets

Investing in Financial Markets

Investment Process

The investment process is divided into 5 stages:

Business Opportunity. Through a macro assessment of our potential business partners. Business assessments are reflected in a tab, which is presented in the Internal Committee on Monday we'll decide if the business qualifies to move on.

Viability / TIR potential. For a week or two members of our team perform a more detailed assessment which will determine the potential profitability of the investment. Additionally, discuss with the management or corporate social conditions that allow the entry of the fund(Harjoto et.al,2006). 

Validation. The manager consulted and relied on experts from the industry where the business is developed in order to validate the assumptions and expectations that the fund is for future investment.

Approval. Prepare a detailed investment thesis, which cover general and particular aspects of the business. The thesis along with the Business Plan prepared by the entrepreneur is presented in the monthly Investment Committee which approves the investments.

Audit. The last step involves a process of due diligence of all relevant aspects of the business, which will check all initial assumptions and which also identify other issues or risks that may impact the investment. The process can be defining an agreed final version of the business plan that lets you watch the road ahead to achieve the goals set jointly by the employer and the Fund.

Financial Instruments Evaluation

There are numerous kinds of economic instruments. Many devices are made-to-order affirmations that the parties tailor to their own needs. However, numerous economic devices are founded on normalized agreements that have fixed characteristics(Fleuriet ,2008).

Some of the most widespread demonstrations of economic devices encompass the following:

Exchanges of cash for future concern payments and repayment of principal.

Loans and Bonds. A lender devotes cash to a borrower in exchange for normal payments of concern and principal.

Asset-Backed Securities. Lenders pool their borrowings simultaneously and deal them to investors. The lenders obtain an direct lump-sum fee and the investors obtain the payments of concern and primary from the inherent lend pool.

Exchanges of cash for likely capital profits or interest.

Stocks. A business deals ownership concerns in the pattern of supply to purchasers of the stock.

Funds. Includes mutual capital, exchange-traded capital, REITs, hedge capital, and numerous other funds. The finance buys other securities making concern and capital profits which rises the share cost of the fund. Investors of the finance may furthermore obtain concern payments.

Exchanges of cash for likely capital profits or to counteract risk.

Options and Futures. Options ...