Definition of 'Investment'

An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.

Definition of 'Speculation
The act of trading in an asset, or conducting a financial transaction, that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain. With speculation, the risk of loss is more than offset by the possibility of a huge gain; otherwise, there would be very little motivation to speculate. While it is often confused with gambling, the key difference is that speculation is generally tantamount to taking a calculated risk and is not dependent on pure chance, whereas gambling depends on totally random outcomes or chance

What's 'security'
Under Section 2(h) of the SCRA, the term 'securities' include: shares, scrips, stocks, bonds, debentures, debenture stock and other marketable securities of a like nature in or in any incorporated company or body corporate; derivatives; Units or any other instrument issued by any collective investment scheme to the investors in such schemes. Mention any four sources of investment information. 1.international affairs 2.national affairs 3.industry information 4.company information 5.stock market information. Mention any four features which are important for choosing specific investment. Risk Return Safety Liquidity

1.Define security analysis Security analysis is the analysis of tradeable financial instruments called securities. These can be classified into debt securities, equities, or some hybrid of the two. More broadly, futures contracts and tradeable credit derivatives are sometimes included. Security analysis is typically divided into fundamental analysis, which relies upon the examination of fundamental business factors such as financial statements, and technical analysis, which focuses upon price trends and momentum. Quantitative may use indicators from both areas. 2.Difference Between FPO and IPO 1.IPO is Initial Public Offering and FPO is Follow-up Public Offering. 2.A company makes an IPO for compiling money and an FPO for adding to the initial public offerings. 3.If a company is coming out with an FPO, it also means that the company is short of funds. An FPO is raised for more funds or money or for establishing new projects. 4.Initial Public Offering is the first sale whereas the Follow-up Public Offering is the second sale for expanding businesses. 5.IPOs are risky investments as an individual investor cannot predict what will happen to the initial trading in the coming days. 6.In the case of FPOs, the risk is lower as an investor already has an idea about the investment and future growth of the company. 7.Initial Public Offerings are more profitable than Follow up Public Offerings. 3.Expand NEAT and BOLT NEAT -National Exchange of Automated Trading BSE On Line Trading

4.The Features of OTCEI are :OTCEI is a floorless exchange where all the activities are fully computerised.

Its promoters have been designated as sponsor members and they alone are entitled to sponsor a company for listing there. Trading on the OTCEI takes place through a network of computers or OTC dealers located at different places within the same city and even across the cities. These computers allow dealers to quote, query & transact through a central OTC computer using the telecommunication links. A Company which is listed on any other recognised stock exchange in India is not permitted simultaneously for listing on OTCEI. OTCEI deals in equity shares, preference shares, bonds, debentures and warrants. 5.Features of primary markets are:

This is the market for new long term equity capital. The primary market is the market where the securities are sold for the first time. Therefore it is also called the new issue market (NIM). In a primary issue, the securities are issued by the company directly to investors. The company receives the money and issues new security certificates to the investors. Primary issues are used by companies for the purpose of setting up new business or for expanding or modernizing the existing business. The primary market performs the crucial function of facilitating capital formation in the economy. The new issue market does not include certain other sources of new long term external finance, such as loans from financial institutions. Borrowers in the new issue market may be raising capital for converting private capital into public capital; this is known as "going public." The financial assets sold can only be redeemed by the original holder.

6.Meaning of Secondary market: The term "secondary market" is also used to refer to the market for any used goods or assets, or an alternative use for an existing product or asset where the customer base is the second market 7.Definition of 'Underwriting' 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. 8.What do you mean by 'Underwriting' The word "underwriter" is said to have come from the practice of having each risk-taker write his or her name under the total amount of risk that he or she was willing to accept at a specified premium. In a way, this is still true today, as new issues are usually brought to market by an

underwriting syndicate in which each firm takes the responsibility (and risk) of selling its specific allotment. 9.What do you mean by Dematerialisation Demat accounts - a type of banking account which dematerialize the paper-based physical shares.

Teleportation (disambiguation) - the movement of objects from one place to another without travelling through space. Dematerialization - the economic concept of reducing the quantity of materials required to serve economic functions (doing more with less).

10.Define Private subscription: A private investment capital subscription (PICS), is a financial tool that relies on a small pool of investors money for real estate investments. The money managers of private investment capital subscriptions or PICS are experienced real estate investment experts, who also invest in related real estate products such as tax lien certificates, foreclosures, notes, as well as development projects on behalf of their subscribers and themselves. 11.What are the Functions of Secondary Markets Provides regular information about the value of security. Helps to observe prices of bonds and their interest rates. Offers to investors liquidity for their assets. Secondary markets bring together many interested parties. It keeps the cost of transactions low. 12.Write the Role of sebi : Regulation of stock exchange and self regulatory organizations. Registration and regulation of stock brokers, sub-brokers, Registrars to all issues, merchant bankers, underwriters, portfolio managers etc. Registration and regulation of the working of collective investment schemes including mutual funds. Prohibition of fraudulent and unfair trade practices relating to securities market. Prohibition of insider trading Regulating substantial acquisition of shares and takeover of companies.