Security Analysis and Investment Management By Guru

Download Security Analysis and Investment Management By Guru book free online – from Security Analysis and Investment Management By Guru book; This note explains the following topics: Introduction to Security Analysis, Risk and Return Concepts, New Issue Market, Stock Exchanges in India – Operations, Listing of Securities, Stock Brokers and Other Intermediaries, Stock Market Indices, Investment Alternatives, Government Securities, Valuation of Fixed Income Securities, valuation of Variable Income

Security analysis is a pre-requisite for making investments. In the present day financial markets, investment has become complicated. One makes investments for a return higher than what he can get by keeping the money in a commercial or cooperative bank or even in an investment bank. In the finance field, it is a common knowledge that money or finance is scarce and that investors try to maximize their return. But the finance theory states that the return is higher, if the risk is also higher. Return and risk go together and they have a trade off. Most of the investments are risky to some degree. The art of
investment is to see that the return is maximized with the minimum of risk, which is inherent in investments. If the investor keeps his money in a bank in savings account, he takes the least risk, as the money is safe and he will get back when he wants it. But he runs the risk that the return in real terms, adjusted for inflation is negative or small and even if positive, it may not come up to his expectations or needs.

Investment is an activity that is undertaken by those who have savings. Savings can be defined as the excess of income over expenditure. However, all savers need not be investors. For example, an individual who sets aside some money in a box for a birthday present is a saver, but cannot be considered an investor. On the other hand, an individual who opens a savings bank account and deposits some money regularly for a birthday present would be called an investor. The motive of savings does not make a saver an investor. However, expectations distinguish the investor from a saver. The saver who puts aside money in a box does not expect excess returns from the savings. However, the saver who opens a savings bank account expects a return from the bank and hence is differentiated as an investor. The expectation of return is hence an essential characteristic of investment.

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