1. YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYWhat is mean by Hedge Fund?

A hedge fund is an investment fund open to a limited range of investors that is permitted by regulators to undertake a wider range of investment and trading activities than other investment funds, and which generally pays a performance fee to its investment manager. Every hedge fund has its own investment strategy which determines the type of investments and the methods of investment it undertakes. Hedge funds, as a class, invest in a broad range of investments including shares, debt and commodities. As the name implies, hedge funds often seek to hedge some of the risks inherent in their investments using a variety of methods, most notably short selling and derivatives. However, the term "hedge fund" has also come to be applied to certain funds that do not hedge their investments, and in particular to funds using short selling and other "hedging" methods to increase rather than reduce risk, with the expectation of increasing the return on their investment. Hedge funds are typically open only to a limited range of professional or wealthy investors. This provides them with an exemption in many urisdictions from regulations governing short selling, derivatives, leverage, fee structures and the li!uidity of interests in the fund. This, along with the performance fee and the fund"s open#ended structure, differentiates a hedge fund from an ordinary investment fund. The net asset value of a hedge fund can run into many billions of dollars, and the gross assets of the fund will usually be higher still due to leverage. Hedge funds dominate certain specialty markets such as trading within derivatives with high#yield ratings and distressed debt.$%&
2. Types of hedge funds?

Hedge funds come in many flavors, including:

Equity market neutral funds, which offset long positions in stocks with equal short positions in order to eliminate systematic market exposure (beta) !onvertible arbitrage funds attempt to exploit anomalies between the price of a stock and the prices of instruments convertible into the stock "ixed income arbitrage tries to predict changes in credit ratings or the term structure of interest rates #ypically these funds strive for market$neutral positions by offsetting long and short positions

%istressed securities funds exploit the fact that many investors lack the desire to participate in the bankruptcy process or the ability to identify their value &erger arbitrage captures any spread between the price of a company and the price that a planned acquiror has offered Hedged equity funds hold both long and short positions but typically remain net long 'lobal macro funds exploit systematic market moves in currencies, futures and option contracts Emerging markets funds focus on less mature investment markets "unds of funds invest in a number of other hedge funds, offering diversification at the cost of double fees

Hedge fund styles, more generally, include:

(elative value, which seeks to exploit valuation discrepancies between their long and short positions Event$driven, which focus on opportunities created by corporate actions such as mergers or offerings Equity hedge, which invest long and short for varying degrees of market exposure and leverage 'lobal asset allocation, which opportunistically go long or short a variety of assets )hort selling, which shorts equities in anticipation of a market decline

"or more information, see all articles on: *ctive &anagement, *lternative *ssets, *sset *llocation, Hedge "unds, +ortfolio &anagement , What is mean by Contingnet liability ANS: * contingent liability is a liability which a company has to show in
balance sheet and if that liability doesnt occur in thew future then the company need not pay

, -hat is capital &arket. * capital market is a market for securities (both debt and equity), where business enterprises (companies) and governments can raise long$term funds /t is defined as a market in which money is lent for periods longer than a year012, as the raising of short$term funds takes place on other markets (e g , the money market) #he capital market

includes the stock market (equity securities) and the bond market (debt) "inancial regulators, such as the 345s "inancial )ervices *uthority (")*) or the 3 ) )ecurities and Exchange !ommission ()E!), oversee the capital markets in their designated 6urisdictions to ensure that investors are protected against fraud, among other duties !apital markets consist of the primary market and the secondary market #he primary markets are where new stock and bonds issues are sold (via underwriting) to investors #he secondary markets are where existing securities are sold and bought from one investor or trader to another, usually on a securities exchange, over the counter, or elsewhere . What is mean by !utual "unds? *ns: *n investment vehicle which is comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market securities and similar assets &utual funds are operated by money mangers, who invest the fund5s capital and attempt to produce capital gains and income for the fund5s investors * mutual fund5s portfolio is structured and maintained to match the investment ob6ectives stated in its prospectus #. What are the types of !utual "und? &utual "unds are classified by structure in to: 7pen $ Ended )chemes !lose$Ended )chemes /nterval )chemes and by ob6ective in to Equity ('rowth) )chemes /ncome )chemes &oney &arket )chemes #ax )aving )chemes 8alanced )chemes 7ffshore funds )pecial )chemes like index schemes etc $. What is primary % Secondary !arket?

*ns: )ecurities generally have two stages in their lifespan #he first stage is when the company initially issues the security directly from its treasury at a predetermined offering price #his is a primary market offering /t is referred to as the /nitial +ublic 7ffering (/+7) /nvestment dealers frequently buy initial offerings on the primary market and resell the securities on the secondary market &. What is stock di'idend? *ns: )tock dividend means the dividend paid in shares (. )hat is mean by *ebt "und? *ns: debt fund in simpler form$ the fund borrowed from outsiders like debentures, bonds, secured and unsecured loans +. )hat is the difference bet)een fund manager and portfolio manger? *ns: fund manager updates the 9*: values of the funds invested by the investors portfolio manager updates the value of the investor portfolio according to the stock market updates the main differnece is fund manager takes care of funds invested by the investors in mutual funds, but the portfolio manager minimises the risk invested in portfolio and updates the portfolio according to the changes in the market he takes care of stock , and funds together ,-.)hat is a Share? *ns: share is total amount of capital of a company which is divided in a number of unit ,,.)hat is a Security? *ns: security is nothing but an investment option where in you can invest your money

,2.What are the . basic /ules in Accounting? *ns: 1 %ebit to receiver !redit to giver ; %ebit what comes in !redit what goes out , %ebit *ll Exp <=oss !redit /ncome<'ain ,..)hat is Capital !arket? *ns: !apital &arket refers to market for long term securities with original maturity of more than one year Eg )tock , 'ovt 8onds etc , .What is portfolio !anagement? *ns: #he process of managing the assets of a mutual fund, including choosing and monitoring appropriate investments and allocating funds accordingly 1> 8ank (econciliation )tatement. *ns: * bank reconciliation statement is a statement prepared by organi?ations to reconcile the balance of cash at bank in a company5s own (E!7(%) -/#H #HE 8*94 )#*#E&E9# 79 * +*(#/!3=*( %*#E ,$.*ifference bet)een Nifty % Sense0? *ns: 9/"#@ /) * >A )#7!4)B)E9)EC /) * ,A )#7!4) 9/"#@ /) 9*#/797= )#7!4 EC!H*9'E *9% )E9)EC /) * 87&8*@ )#7!4 EC!H*9'E ,&.What is N1? *ns: /t is 9et +rofit "rom 'ross +rofit deduction are to be made

for indirect expenses than we can derive the np ,(.What is merger? *ns: #he combination of two or more copanies in which only one firm survies as a legal entity ,+.What is finance? *ns: finance it is regarded as blood of the organisation without finance the firm can,t be existing it refers to the financial assets which r necessary for run the business smoothly 2-.)hat is Secondary !arket? *ns: additional securities exchange of stock market 2,.)hat is 2ull !arket? *ns: 8ull market is where the prices go up 22.What are 3AA1? *9): gaap stans for generally accepted accounting principles which includes the concepts of accounting there are,business entity concept,money measurement concept,going concern concept,debit equity concept etc 2..)hat is book 4alue? *9): #he value at which an asset is carried on a balance sheet /n other words, the cost of an asset minus accumulated depreciation 2 .)hat is 56uity? *ns: Equity is the capital amount which is raised or contributed by the members of the company #he net worth of a company #his represents the ownership interest of the shareholders (common and preferred) of a company "or this reason, shares are often known as

equities 2#.1rinciples of Accounting )ith atleast one 50ample of each? *ns: 1 while an asset is increasing in a concern, it must be debit eg while purchasing furniture, debit the "urniture ; while asset is decreasing, it must be credit eg when giving cash cash will be credit Contingent liabilityCapital !arket 78mportant9*eri'ati'es :2onds:56uity depreciationCurrency!utual fund 78mportant9"unds"und "lo) Cash flo);edging 78mportant9;edge "unds78mportant9Types of ;edge "unds /atios78mportant91rinciples of Accounting2asic in 2.com 78mportant9 <ptions % "uture1ro=ect 78mportant9Account1ayablesAccount/ece Trialbalance5tc related to finance % mutual fundAbout MS XL