World Of Finance

        World of Finance by M.Vijaya Sai   In general Swap means the exchange of one asset or liability for a comparable asset or liability for the purpose of lengthening or shortening maturities or raising or lowering coupon rates to maximize revenue or minimize financing costs. This may entail selling one securities issue and buying another in foreign currency; it may entail buying a currency on the spot market and simultaneously selling it forward. Swaps also may involve exchanging income flows; for example, exchanging the fixed rate coupon stream of a bond for a variable rate payment stream or vice versa  while not swapping the principal component of the bond. Swaps are generally traded over-the-counter. In finance a swap is a derivative in which two counterparties consent to exchange one stream of cash flow against another stream. These streams are called the legs of the swap. The cash flows are planned over a...

        World of Finance by M.Vijaya Sai   What is Absolute Return? Investment returns have conventionally been measured against a market index rather than in terms of whether the investments appreciate in value or not. Absolute Return investments seek to generate positive investment returns at all times. What is a hedge fund? Hedge funds can be defined as absolute return oriented investment vehicles which utilize sophisticated investment techniques for the purpose of achieving superior risk adjusted returns. Hedge funds are frequently referred to as alternative investments. What is the history of hedge fund investing ? The first acknowledged hedge fund was introduced in 1949, even though leverage and short selling had been used long before this time, but not collectively in a low risk hedged model. The original model of long/short equities in the similar sector has evolved into a multitude of strategies. Portfolios ...

        World of Finance by M.Vijaya Sai   Options Strategies Let us refresh our memory on Options which I covered in my previous article  Futures and Options – Part1 and  Futures and Options – Part 2.Options are financial instruments that give the buyer the right to buy (for a call option) or sell (for a put option) the underlying security at some specific point of time in the future (European Option), which is fixed in advance i.e. when the option is written. Call options increase in value as the underlying stock increases in value. Likewise put options increase in value as the underlying stock decreases in value. In this article we will discuss some most commonly used options strategies . These strategies depend on whether investors are growth-oriented or conservative, or short-term aggressive traders. Options are generally used to speculate on the movement of the price of underlying asset or hedge an existin...

        World of Finance by M.Vijaya Sai   Making money from Indian stock market was never so simple. Even though markets are in the upswing we can find more and more people losing in stocks. A close study shows non understanding of financial markets as the major reason for this. Fundamental study helps you to identify potential winners which can be multi-baggers. Technical analysis helps to time the markets. But there is one more important factor that affects the profits of your investments that is Tax. In this article we have briefly explained different types of Taxes that influences your Returns. Securities Transaction Tax (STT) Securities Transaction Tax (STT) is a tax on the value of shares bought and sold on a stock exchange. The Tax has to be paid irrespective of your profit or loss; it is a turnover based tax. STT has been introduced in the in the year 2004-05. It is levied on the purchase or sale of equity share...

        World of Finance by M.Vijaya Sai     28th of August was a very special day in the history of Prasanthi Nilayam. Not sure where to start to describe such a unique day. This was the day when the India's THINK TANKS of the Commerce world were present but there was no commerce exchanged. This was the day when all the heads of Banks in India thronged to Parthi but not even an account was opened, This was the day when every body were contemplating on their mistakes, digging into the causes for this so called financial recession which the whole world is experiencing.   In the auditorium of Sri Sathya Sai University. This was a very unique conference where every one were trying to know the real use of money. They came to the Master who says, Money comes and goes, Morality comes but Gr...