SECURITIES MANAGEMENT

SECURITIES MANAGEMENT

Companies reserve its amount in the form of securities and manage it.what thing should keep in mind to buy the securities we will discribe here important point.

Portfolio Management

Portfolio defination:

The investment in different securities is called portfolio. The purpose of portfolio is to reduce the risk. Companies manage its cash reserves in the form of different securities which is called securities portfolio.

Ready Cash Segment:

The purpose of this segment is to use the cash in future at a time of emergency. In this segment only that securities mostly include that have less chance of price will be reduce in future.

Controllable or Knownable Cash Segment:

(Future payment) The controllable cash segment of the portfolio is developed by the company for the purpose of future knownable payments. 

Free Cash Segment/excess Cash Segment:

After reserve in the cash by the companies for different purposes if some cash is left over the company should reserve that cash in the form sectrities and that securities keep in this segment.

Factors Consider by the Company before Purchasing Securities:

1) Sefty (Principal Amount)
fast growning
good will
market capitalization
no of customer

2) Liquidity or Marketablility:
high liquidate (how quickly sell)

3) Risk:
fluction in return or uncertainty in return.
price stability.


FINANCIAL MANAGEMENT
DECISION AREA OF FINANCIAL MANAGEMENT
AGENCY PROBLEM
TYPES OF BUSINESS
FINANCIAL SYSTEM
FINANCIAL INTERMEDIARIES
TYPES OF FINANCIAL MARKETS
TIME VALUE OF MONEY
EXAMPLES AND FORMULA TIME VALUE OF MONEY
CASH FLOW,SUM,SERIES OF CASH, ANNUITY AND MIX STREAM
ANNUITY TYPES AND FORMULA
AMORTIZATION SCHEDULE OR TABLE WITH EXAMPLE
EFFECTIVE INTEREST RATE WITH EXAMPLE
VALUATION OF LONG TERM SECURITIES (BONDS)
TYPES OF BONDS
BONDS FORMULA,ZERO COUPON PERPETUAL
VALUATION OF LONG TERM SECURITIES (SHARE)
CASH AND MARKETABLE SECURITIES MANAGEMENT
MANAGING CASH INFLOW AND OUTFLOW
SECURITIES MANAGEMENT
SHORT TERM FINANCING
SPONTANEOUS LABILITIES
NEGOTIATED FINANCE
CAPITAL BUDGETING
CAPITAL BUDGETING TECHNIQUE
NET PRESENT VALUE TECHNIQUE
INTERNAL RATE OF RETURN TECHNIQUE
ACCOUNT RECEIVABLE MANAGEMENT
INVENTORY MANAGEMENT
FORCASTING

MBA NOTES FINANCIAL MANAGEMENT