JULY 27, 2022
INVESTMENT CONCEPTS
CHAPTER ONE
IZEL BARNARD
BUSINESS MANAGEMENT 142
, Investment Concepts
Table of Contents
1.1. Introduction .................................................................................................................... 3
1.2. Investment Objectives ..................................................................................................... 3
1.3. Terminology .................................................................................................................... 4
1.3.1. Financial Instruments and Financial Securities ........................................................ 5
1.3.1.1. Shares ............................................................................................................... 5
1.3.1.2. Bonds and Gilts ................................................................................................. 5
1.3.2. Securities Exchange.................................................................................................. 6
1.3.3. Strate and Dematerialization ................................................................................... 6
Strate .................................................................................................................................. 6
Dematerialization ............................................................................................................... 6
1.3.4. Money Market and Capital Market .......................................................................... 6
Money Market.................................................................................................................... 6
Capital Market .................................................................................................................... 6
1.3.5. Primary Market ........................................................................................................ 7
1.3.6. Secondary Market .................................................................................................... 7
1.3.7. Share Price ............................................................................................................... 7
1.3.8. Blue Chips ................................................................................................................ 7
1.3.9. Portfolio and Diversification..................................................................................... 8
Portfolio.............................................................................................................................. 8
Diversification..................................................................................................................... 8
1.3.10. Risk ....................................................................................................................... 8
1.3.11. Institutional Investors........................................................................................... 8
1.3.12. Unit Trust.............................................................................................................. 8
1.3.13. Listing ................................................................................................................... 8
1.3.14. Arbitrage .............................................................................................................. 9
1.3.15. Bull Market vs. Bear Market ................................................................................. 9
Bull Market ......................................................................................................................... 9
Bear Market........................................................................................................................ 9
1.3.16. Bulls, Bears and Stags ........................................................................................... 9
Bulls .................................................................................................................................... 9
Bear Speculator .................................................................................................................. 9
Stag Speculator................................................................................................................... 9
Page 1 of 14
INVESTMENT CONCEPTS
CHAPTER ONE
IZEL BARNARD
BUSINESS MANAGEMENT 142
, Investment Concepts
Table of Contents
1.1. Introduction .................................................................................................................... 3
1.2. Investment Objectives ..................................................................................................... 3
1.3. Terminology .................................................................................................................... 4
1.3.1. Financial Instruments and Financial Securities ........................................................ 5
1.3.1.1. Shares ............................................................................................................... 5
1.3.1.2. Bonds and Gilts ................................................................................................. 5
1.3.2. Securities Exchange.................................................................................................. 6
1.3.3. Strate and Dematerialization ................................................................................... 6
Strate .................................................................................................................................. 6
Dematerialization ............................................................................................................... 6
1.3.4. Money Market and Capital Market .......................................................................... 6
Money Market.................................................................................................................... 6
Capital Market .................................................................................................................... 6
1.3.5. Primary Market ........................................................................................................ 7
1.3.6. Secondary Market .................................................................................................... 7
1.3.7. Share Price ............................................................................................................... 7
1.3.8. Blue Chips ................................................................................................................ 7
1.3.9. Portfolio and Diversification..................................................................................... 8
Portfolio.............................................................................................................................. 8
Diversification..................................................................................................................... 8
1.3.10. Risk ....................................................................................................................... 8
1.3.11. Institutional Investors........................................................................................... 8
1.3.12. Unit Trust.............................................................................................................. 8
1.3.13. Listing ................................................................................................................... 8
1.3.14. Arbitrage .............................................................................................................. 9
1.3.15. Bull Market vs. Bear Market ................................................................................. 9
Bull Market ......................................................................................................................... 9
Bear Market........................................................................................................................ 9
1.3.16. Bulls, Bears and Stags ........................................................................................... 9
Bulls .................................................................................................................................... 9
Bear Speculator .................................................................................................................. 9
Stag Speculator................................................................................................................... 9
Page 1 of 14
