Sunday 27 October 2013

BROKER'S ACCOUNT

BROKER'S ACCOUNT

The account through which the broker sell or purchase security. There are two types of accounts.


  • Cash Account
  • Marginal Account

Cash Account:

In this account all the securities are sold or purchased on cash.
Example:
investor provide 20000 to broker and broker purchase the pepsi share etc.

In this account the some payments of the securities are paid by the investors and some payments are paid by the broker. The investor borrow the money from the broker.
Example:
Suppose the securities amount is 100000 and 50% paid by investor and 50% paid by broker and broker will also charge its commision extra and also will take the interest on 50000  (50%) of investor amount and always loss will investor because when broker will see the price is going down form its all profit it will sell the security and all loss will be faced by investor.


INVESTMENT AND PORTFOLIO MANAGEMENT
INVESTMENT VS SPECULATION AND GAMBLING
TYPES OF INVESTOR
INVESTMENT COMPANIES
TYPES OF MUTUAL FUNDS
TYPES OF BONDS FUNDS
MONEY MARKET FUNDS
SECURITIES MARKET
TYPES OF INDEX
TYPES OF BROKERS
BROKER'S ACCOUNT
MARGINAL ACCOUNT
ORDER AND ITS TYPES
RISK AND ITS TYPES
RETURN PORTFOLIO ANALYSIS
RISK PORTFOLIO ANALYSIS
RISK AND RETURN OF AN INDIVIDUAL SECURITIES
ANALYSIS OF COMMON STOCK VALUATION
CAPM MODEL (CAPITAL ASSET PRICING MODEL)
MARKOWITZ MODEL



MBA NOTES INVESTMENT AND PORTFOLIO MANAGEMENT

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