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Open Or Close Ended Mutual Fund Investment Schemes

An ever-growing scheme of mutual funds India calls the necessity to choose the right scheme for oneself. Every scheme has a new strategy related to your investment.

Some people who blindly go ahead with the investment suffer in terms of money when they realize they have chosen a mutual fund investment scheme that did not work for them. It is always imperative to understand and know your scheme before you go ahead with your invest mutual funds. Make sure you research a lot on the company you are planning to invest with and check whether it aligns with your objectives or not.

There are a plenty of schemes in mutual funds India. The major schemes count in open ended schemes, close ended schemes, interval schemes, growth mutual funds, balanced schemes, money market or liquid schemes and tax saving schemes.

Open ended schemes and close ended schemes are the most heard of mutual fund schemes in India. Open ended schemes are for investment in stock market. They are referred to as open-ended schemes as there is no fixed period of maturity. Investors can withdraw anytime they want. If the investor wants to exist from the scheme before the six months, he would have to pay the rate of load.

Open ended mutual funds have their own share of benefits. The time for profit can be booked by the investor. He can ask for his invested money during any emergency. Many open ended schemes offer trigger facility that involves the investor to set a target amount. On the arrival of the target amount, the investor gets his investment redeemed.

The investor can benefit the rupee cost averaging by investing through systematic investment plans (SIPs). The benefits offered by Open Ended schemes make investors invest to create and secure their wealth.

On the other hand, close ended schemes of mutual funds come with a fixed maturity period. The investors here cannot withdraw before the specific time. Long term invest mutual funds of close ended schemes provide a good return on capital. Unlike open ended schemes, the investor cannot get his investment back during any emergency. Redemption cannot be made on the investors willingness, as he does not enjoy the trigger facility under this scheme.

If the period is same, both open ended and close ended mutual funds return the same on capital. Investors looking out for benefits on income tax aim the later. Under the open ended scheme, the investor can leave any time he wants after the expenses are met but the close ended scheme forces the investor to stay under the scheme until the period expires.

The investor, if wants to invest for a longer period, can go for close ended schemes as an instrument of return on investment considering the long-term nature of the scheme. If the investor wants quick returns, then open ended schemes would be a good option. Many companies dealing in mutual funds India now have their own websites through which investors can invest in mutual fund online too.

Natural Rubber – A Money-Making Alternative Commodity

Did you know natural rubber can be a good income source or, as some would say, a gold mine? That’s because the usage of rubber is so ingrained in our lives that a lot of things individuals and society take pleasure in might vanish if we were to remove the natural rubber facet.

Natural rubber, that you may possibly also know as India rubber, is cultivated in South East Asia, in nations like Thailand and Indonesia. The weather in these areas is ideal for the growth of India rubber. By all means, this resource has what it takes to be referred to as new gold for developing Asian countries.

There is a range of explanations why natural rubber could be your brand-new cash cow later on. Many people may think that there’s no real cash to make when you buy rubber, however they are simply wrong. This is simply not the case at all. The marketplace for natural rubber has witnessed a great deal of growth over the course of the previous 10 years – specially in the previous few years. This outstanding growth is the reason why many people are starting look for investment advice.

From a business point of view, you actually don’t need to spend an excess amount on developing your own plantation of natural rubber; though should you truly want the best you will want to shell out large sums of money or capital for everything to operate adequately.

Make no bones about it: India rubber will always be remarkably significant. Take a glance around you and add up the amount of household items and devices which need the employment of rubber. Vehicles will need rubber and so does a great deal of devices as well as many pieces of equipment. Ponder, for a minute, how many tyres are created world wide every day.

Due to this huge demand for India rubber, there’s a lot of money to be made in meeting this demand. There have been studies that claim that unlike other organic assets like gas and fossil fuel, natural rubber will never come to an end provided that the resources are preserved properly. Owning an endless resource for natural rubber is a wonderful cash cow, and one which may with some luck make you, or some other trader, plenty of cash in the long-run.

In addition, making an investment in natural rubber is a great idea for people who like to know they’re doing something which is honourable. What I mean is you’re going to be helping out the local neighborhoods in South East Asia. Local manpower does more than just harvest the latex that will end up being the basis of the rubber. As an example, people may also be employed as security to help safeguard the farm. You might be empowering the local community by providing them something with which they can feed themselves and their households. Providing this tiny amount of happiness for your staff members is one thing which has been overlooked by other companies during the past and is one thing that you might want to consider when you invest in India rubber.

Matthew Edison is a freelance journalist with an interest in the alternative commodities market, including palm oil, gas and rubber investment opportunities. Read more by going to the Cedar Falls website.

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You can Earn Money by Blogging!/p>

In truth, this is. In the event the first outburst of blogging and site-building over the web was launched for hobbyists, now, get ready to enjoy carrying it out, while making thousands of dollars.

Yes, truly and surely, you can make money blogging. Logically, probably the most you may make offers some hundred dollars a month that can’t be available on trees or scoffed at. These days, the Web, a social networking of bloggers, have provided more alternatives and ways where you’ll be able to increase your earning potential with blogs.

Do you need to earn money blogging? Then, choose an ideal blog that may focus on your needs for a blog, sign up, create a blog and publish it straight away! Blogging sites let you build blogs in accordance with your tastes. Others have HTML and link options. Others have personalized templates where you can improve your blog page’s color and design.

Among signing up and making a blog, though, you must realise what at the mercy of blog about. Your subject matter is an important consideration, so invest some time conceptualizing before getting into the fray. In case you got to know, this issue could be the determining factor the amount of money you can generate using the blog you will create.

Look for content or topics that pay more from per click and the like. Check out Ppc and AdSense to understand the amount each clicks a topic costs. Google AdSense then permits you to place ads on the blog. Once a user transpires with open your blog post and click on the advertisement, you will earn money onto it. Just that!

There is also the Blog Advertising services in which enables you to gain treatments for the ads appearing in your blog. This particular service isn’t using a pay-per-click system, meaning it will permit you to make money blogging regardless of the variety of clicks the ads.

It is because BlogAds pay companies for your space of the ads for a certain period. Their sign up options are free and after joining, you may then know what your advertising prices you may charge.

As soon as your offering is announced to businesses, consequently, they will contact you on an ad’ space in your blog. Google, meanwhile, will set any ad which includes keywords related to your blog post. Any which way, you’re bound to earn.

Discover how to generate a supplementary $500 30 days working Half hour per day 5 days every week using a website blogging system.Have the free blueprint here! Learn to Share cool content with friends and family and get paid.

Why Investment Properties Melbourne Best

Even in todays less than stable economy, many investors in the Melbourne area are finding that they are able to achieve financial success by looking into investment properties Melbourne . This can be a fun process that requires less knowledge of hard financial procedures than other investments, such as investing in the stock market. Instead, a basic ability to research housing trends, and a good source of information could point you in the right direction. However, before you sign any contracts, be sure that you have a firm idea of how to evaluate the real estate. You will need to know if this property has a good chance of succeeding. With a few simple evaluation techniques, you should be able to narrow down the options. The first step towards purchasing any investment properties Melbourne is of course to locate them. To do this, you will have to conduct a fair bit of research. Checking local real estate sites or getting in touch with brokers will give you access to the latest listings. However, its important to remember that older or more obscure properties, which might be a good investment, arent always on the internet for you to locate from your couch. You might have to go out in the field with a qualified broker to see these types of properties. Newspapers often have these listings, so its worth browsing through the real estate section on Sundays.

Those that are thinking about getting involved with off the plan Melbourne investment opportunities for the first time should know that it can be a complicated and overwhelming process. It helps to work with a real estate investment firm that specializes in these types of concept and design driven situations so that you can make the best decisions for your financial future. The firm that you work with should have a good reputation in the Melbourne market and should have experience with all types of properties, from apartments to terraces.

You might be keen to find your investment properties Melbourne on your own, but a real estate broker can help out in several different ways. They can not only help you visit properties, but they will also be able to tell you what comparable properties have sold for, which will help you make a sound financial decision. Something may look good on paper to the untrained eye, but be virtually unsellable to the real estate professional. Once you have narrowed down your initial search to a few promising properties, you will then need to further evaluate them.

That rate of return is something to keep in the back of your head before you purchase the investment properties Melbourne. Although purchasing a piece of older property with the intention to renovate it could yield a high return, it will most likely take a great deal of time to do so. Making repairs takes time and effort. Therefore, those who are looking for fast cash may wish to search elsewhere.

The term “House & Land” package is often used loosely. In an ideal world every Home & Land Package promoted would include fixed price site costs completely checked against developer guidelines and council requirements, etc. In reality this is very difficult with so many homes that could potentially be packaged onto so many blocks of land.

Best Mutual Fund Investment Strategy For 2012 And 2013

Best Mutual Fund Investment Strategy For 2012 and 2013

For most people the best mutual fund investment and the best investment strategy for 2012 and 2013 can be found in a single package, which comes complete with both fund and strategy. Before you invest money, here’s how to find the best fund with a strategy that fits you.

People invest money in a mutual fund because these investment packages offer professional management, each fund with its own investment strategy. The problem is that even the best fund in the stock or bond arena can get casual investors into trouble if they just buy, hold, and ignore it. The same stock (equity) fund that doubled in value between early 2009 and 2011 could well lose half its value if 2012 and/or 2013 turn out to be bad years for the stock market. History has proven that most people invest money without a sound investment strategy. They simply buy, hold and ignore.

Remember this: the normal investment strategy for a stock fund is to invest about 98% of the portfolio in stocks. The same is true in the bond department. The best investment strategy for most people is to invest money in a variety of both stocks and bonds, with some money tucked away earning interest with high safety. If you don’t have the time or expertise necessary to invest money and stay on top of all three areas, what’s your best mutual fund to invest money in?

The best fund for most folks falls into a category called BALANCED, ASSET ALLOCATION, or TARGET RETIREMENT because the investment strategy here is to invest money in all three areas, while keeping the investor portfolio balanced (ratio of stocks to bonds) throughout the years. The TARGET types take investment strategy one step further by reducing risk over time to adjust for the fact that the investor is growing older. In other words, all in one package you get the best mutual fund complete with the best investment strategy for 2012, 2013 and beyond. You can simply buy and hold, and let management do the rest.

Now, let’s get more specific, using target retirement funds as our example. Investment strategy and portfolio asset allocation is usually described as CONSERVATIVE, MODERATE, or AGGRESSIVE. The higher the target number, the more aggressive (risky) a target fund is – meaning a higher allocation to stocks vs. bonds and safer investments. For example, a Target 2000 might be labeled as conservative with 20% of the portfolio in stocks, while a Target 2035 labeled as moderate could have 80% invested in stocks. Look at the asset allocation percentages before you invest money! A target fund with a target number higher than 2040 can have 90% of assets invested in stocks.

With all of the uncertainty surrounding 2012 and 2013… including high unemployment, a sluggish economy, and the threat of higher inflation… many people need a more conservative fund in order to sleep at night. If you can relate to this the best mutual fund investment for you might be a Target 2000 with about 20% of its portfolio in stocks, 35% in bonds and 40% in safer areas that pay interest. Or, you might want to invest money in a Target 2010 with about 50% in stocks and most of the rest in bonds.

You can make the best of it in 2012, 2013 and beyond if you do a little homework before you invest money. Go to websites like Fidelity and Vanguard, the two largest mutual fund companies, to get a handle on the best mutual fund that fits your risk profile. If you want to just invest money and hold on, your best mutual fund investment is some form of balanced fund where the fund company takes care of the investment strategy for you.For Full Information visit to -http://investment-uk.co.uk

Investment Banking Interview Preparation

For undergrads and MBA students, the news that they have been selected for an interview at an investment bank comes with both excitement and dread. A position as an analyst or associate in corporate finance can be the first step towards a highly successful and highly lucrative career. Investment banking interviews, however, can be some of the most intimidating interviews out there, so let’s take a look at how to get prepared.

Before we jump into interview practice mode, we should take a step back and think about how we want to come across in the interview. In short, investment banking candidates should come off as bright, confident and likable.

In the final cut of selecting a hire, investment banks have already determined which candidates are smart and capable, so the decision comes down to who they like the best. So in addition to knowing a thing or two, candidates must remember to come across as a fun person to work with as well.

Know Your Story

Like any interview, candidates should have stories prepared about their lives that discuss their past, present and future. These are great answers for the standard questions:

“Tell me about yourself.” Or “Walk me through your rsum.” “Why are you interested in investment banking or this firm?” “Where do you see yourself in five to ten years?”

Candidates are highly likely to receive these or similar questions in any interview, and having succinct, practiced answers to them will give the impression of a polished candidate.

Your past story should highlight events that have qualified you for or gotten you interested in investment banking. Your present story should demonstrate why you want the particular position, how it is a logical step from where you are coming from and perhaps touch on where you hope the position will lead.

Your future story should discuss how investment banking will lead to where you want to go. Good future ambitions might be a managing director position in investment banking, a principle at a private equity firm, a CFO or perhaps and entrepreneur. In any case, you should communicate that those are long-term ambitions and you look forward to the experiences you’ll have in the position you’re interviewing for.

Know the Industry and Firm

Where investment banking interviews begin to get trickier is that firms will expect you to know what you’re getting into. If you confuse an equity analyst position with an analyst position in corporate finance, for example, you will not make it any further in the process.

You should understand the major divisions within an investment bank – sales & trading, corporate finance, research, etc. You should understand the hierarchy of positions within corporate finance – analyst, associate, vice president, managing director – and what each position does.

At the macro level, you need to understand the major differences between bulge bracket investment banks, middle market and boutique investment banks. You should also have a good answer for why you would prefer one type over another (and be sure that you prefer the type you’re interviewing with).

Bringing More New Customers To Your Restaurant

When I ask the following question to restaurateurs:

What’s their biggest challenge as a restaurateur?

This is the number one answer from a significant number of restaurateurs every month:

“To bring new customers to my restaurant.”

It looks like a logical answer, doesn’t? Who doesn’t want to have lots of new people walking through your door? However, if I continued to my manage my restaurant – and after learning a lot in the last years about marketing – my wish would probably be different. It would be something like:

“I want my existing clients to come back to my restaurant over and over.”

Does that mean I don’t want new customers? Of course I do, new customers are new opportunities to convert into repeated clients, but targeting your marketing efforts towards getting new clients shouldn’t make up the bulk of yourexpenses orefforts. So what do you need to do?

I will explain to you by presenting a hypotheticalexercise:

Let’s imagine that we have two restaurants with similar capacity.We will call them Restaurant A and Restaurant B.

For the sake of simplicity we assume the following parameters are common to both restaurants:

* The average price per meal is $25 * The profitmarginper meal is $10 * The marketing investment for both is $5,000

Now the differences are:

Restaurant A invests all the $5,000 in bringing in new customers. They invest the money in a very successfulcampaignand create direct mailing, discount coupons, etc.

When the $5,000 marketing dollars are over, they brought to their restaurant 1,000 new customers. Pretty good, eh? Five dollars per customers is an extremely small investment towards bringing in new clients.

Restaurant B does things differently. They spend the same amount of money ($5,000) but instead of expending the entire amount focusing on bringing new clients via advertising, they decide to invest all the money in their existing clients to bring them back over and over.

They will also give themincentives for their friends and family members so that they can also come in and try their restaurant.

Who do you think will do better? Let’s do some numbers.

Restaurant A invested $5,000 and brought 1,000 people who will give a profit of $10 each so they made a total of $10,000 profit or a 50% return of investment. Not bad.

Restaurant B focused instead on bringing back their existing customers via a formalized referral system. They gave 100 of their best clients four gift certificates: one for them to come back again and three others to give to their friends and family members so that they can try your restaurant for themselves. These giftcertificatesgive them 50% off of their entire meal.

Now, remember, an average meal only cost Restaurant B $15 since the other $10 is profit as we mentioned before. Even when you offer a 50% discount, it will only cost you $7.50 per meal.

Also, when you give somebody a gift certificate, chances are that they won’t come to your place alone. Most likely they will bring some company to enjoy their meals with. Let’s assume that for each $12.50 (50% of the price of the average meal) that you give away, you bring back two people. Now, your cost is $3.75 for each. Wow! It’s even better than the initial investment. But that’s not all, three things are also happening here:

If the people don’t use the gift certificates when they dine, you’re not losing any money, making this investment a sure thing (versus spending money on advertising that can’t guarantee you any results).

New visitors will come predisposed to like your place; after all, your restaurant has been recommended by a source that they trust more than any other restaurant review – their friends or family members who gave them your gift certificate in the first place.

If your restaurant offers great food and service, they’ll likely come back again since they felt that not only did they get a good deal because of the discount, but you can also give them a gift certificate for themselves plus three extra for their friends to try your place. This is called viral marketing since they are spreading the word about your place.

Do you see how this goes? You can invest a lot of money to bring new people to your place that may never come back, or you can spend less money to create a referral system that will bring people wanting to eat at your place, and with a solid predisposition to having a great time.

These techniques will, if you stick to your system, bring in new repeat clients and also will establish a referral system for you and your place.

In these times of economic crisis, every single marketing dollar that you spend needs to be leveraged to bring you the maximum amount of profit. Be wise and think strategically before spending your hard earned money.

Happy sailing

Stock Investment In Nigeria Its Process And Benefits

Introduction

Securities are created and issued by corporate bodies and governments, which are in need of funds to finance expansion or development projects. For instance, Wazobia Plc, a manufacturing concern needs to expand its facilities to accommodate present and anticipated consumer demand as well as replace aging or obsolete equipments. It is however, short of internally generated funds (retained earnings) to undertake the projects require long gestation and payback periods, money market facilities which have short tenure would be inappropriate funding sources. The company would be left with one possible option, that is, to access the capital market if it meets the requirements for entry. This could be done by issuing shares and/or debt instruments. (Securities and Exchange Commission, 1999). Thus, capital market is a segment of financial market that is responsible for mobilizing and channelling long term funds into productive investment such as fixed assets. The investments in capital market are at longer period of time, which are held for a minimum of five years.

Moreover, the term securities consist of stocks and bonds. It is not possible in
this paper to digest all aspect of securities. Therefore, this paper shall limit itself to stocks only (i.e. shares).

Theoretical Framework

Fischer and Jordan (2005) see investment as a commitment of funds made in the expectation of some positive rate of return. If the investment is properly undertaken, the return will be commensurate with the risk the investor assumes.

Similarly, an investment is the current commitment of money or other resources in the expectation of reaping future benefits. For example, an individual might purchase shares of stock anticipating that the future proceeds from the shares
will justify both the time that her money is tied up as well as the risk of the investment. You sacrifice something of value now, expecting to benefit from that sacrifice later. (Bodie, Kane, and Marcus, 1998, p. 2).

Distinction between real assets and financial assets

According to Bodie, Kane, & Marcus (1998) real assets are assets used to produce goods and services. In contrast to such real assets are financial assets, such as stocks and bonds. Such securities are no more than sheets of paper (or entries in a computer) Financial assets are claims to the income generated by real assets (or claims on income from the government). If we cannot own our own auto plant, we can still buy shares in General Motors or Toyota and, thereby, share in the income derived from the production of automobiles.

Definition of Stock

In simple terms shares is ownership in share of a corporation. According to Ahmed (2008) securities as stocks and bonds. According to him, a stock represents a share, or percentage, in a corporations profits and assets. By purchasing stock an investor is buying a percentage of ownership in a company.

Different Types of Stock

There are two main types of stock or shares, namely; ordinary shares and preference shares. Ordinary shares according to Nwiwu, Yau, Ezeocha, Ezima and Uzoigwe (2007) this form that part of capital structure of the business contributed by the common stock holders .For a new company it is called venture capital but in the old companies it is called equity share capital.

Ordinary or equity shareholders ordinarily own the business, so all reserves belong to them. They have the right to votes in the company. The shares are non- redeemable even though transferable. However, they have no fixed rate of dividend since rate depends on the level of profitability, company liquidity and management discretion. On the other hand, Preference shares are the hybrid or bat of financing because they exhibit the tendencies of both equity and debt at the same time. They have a fixed percentage dividend before any dividend is paid to the ordinary shareholders.

Share Certificate

Nwaiwu (2004) when shares are allotted to the investor a note will be sent indicating the number of shares allotted. After some period a share certificate will be issued. This certificate is a security, a proof of ownership of the shares in the company. If in future the shareholder wishes to sell the shares, the share certificate must be surrendered to a stockbroker who will forward it to the companys registrar. Nigerian Investments and Securities Law Reports (2004) pointed out that securities in the market are available in either of the following two (2) forms:

i.In certificate form; and
ii.In dematerialized form

When a security is presented in a certificate form, the selling agent needs to verify the signature of the holder and the validity of the presented certificate(s) with the Registrar to the company, after which it could be deposited for sale or any other form of transfer in dematerialized form into the account of the beneficial owner held with the CSCS. Consequently, any subsequent sale or transfer of these securities can validly be undertaken without any need to revert to the Registrar. It therefore follows that securities held in the CSCS account of any holder are deemed to have undergone the necessary verification and confirmation with the Registrars and therefore the holder is rightfully accepted as the true beneficial owner of the securities reflected in his account with CSCS. Thereafter, the only proof of ownership of the said securities that is available to the beneficial owner is the CSCS statement of account issued to him.

Benefits of Investing in Shares

According to Kofa (2004) there are numerous benefits accruing to a shareholder who invests in shares. Such benefits include:

i)Return on investment by way of dividend payment (share of profit by the company on each share owned by the shareholder. This of course depends on the number of shares held by the shareholder. The dividend declared by the companys Directors must however be approved at the companys Annual General Meeting (AGM).

ii)Bonus issue, this is an additional share given to shareholders based on the number of shares owned by each shareholder free of charge at a ratio approved by the Board of Directors/Management and ratified at the companys AGM.

iii)Capital appreciation; this is an increase of share price over time. The value of company share increases due to performance and demand/supply factors. That is, for example, unit price of share purchased today at N10.00 could be N20.00 one year after, due to market forces.

iv)It can be used for security/collateral for loan purposes. Share certificates or statements are acceptable as good collateral for loans by banks and other financial institutions.

v)Pressing immediate needs could be met without seeking any bank/individual financial assistance by disposition of shares.

Risks associated with stock investment

Elakama (2004) emphasized that there are no guarantees when it comes to individual stocks. Some companies pay out dividends, but many others do not. And there is no obligation to pay out dividends even for those firms that have traditionally given them. Without dividends an investor can make money on a stock only through its appreciation in the open market. On the downside, any stock may go bankrupt, in which case your investment is worth nothing.
Similarly, Securities and Exchange Commission (1999) like other forms of investments, there are risk/cost associated with investing in the capital market. There are also obligations on issuers of securities. The risk to investors includes possible unfavourable rate of return owing to depreciation in market value and/or nonpayment of dividends. It could also involve possible loss of investment should a company go burst.

Nature of capital market

At this point, it is important to recognise the nature of capital market. Sulaiman (1999) defines capital market as a network of interrelated institutions governed by operational guidelines which permit the sale of equity and long term debt

Elements of the capital market

There are three identifiable features of a capital market. These are: the instruments; the market place; and the participants.

a)Financial instruments
Financial instruments are the investment products, created to ensure the smooth and easy transfer of funds in the capital market. These instruments, generally known as securities are financial assets, which represent either debt or ownership. The instruments have various features depending on their type between the primary and secondary markets is the fact that proceeds of sale of primary securities go to the issuer (company or government) whereas in the secondary market, proceeds go to the investor.

b)The market place
Securities and Exchange Commission (1999) the capital market is divided into two separate but closely-related segments known as the primary and secondary markets. Primary Market a forum where new shares are offered to both existing shareholders and general public for purchase. Primary market offers can either be made directly by the company to increase its paid-up capital or through privatization of Government holdings, technically called divestment of government shares. On the other hand, Secondary Market is a market where existing shares are traded (sold and bought). Trading of shares at secondary market takes place on the floor of The Nigerian stock exchange. The Stockbrokers buy and sell shares on behalf of their respective clients. Essentially, the Stockbrokers are the dealing member firms licensed by both the Nigeria Stock Exchange (NSE) and the Securities and Exchange Commission (SEC) to deal on shares and offer other services to the investing public. (Kofa, 2004, p.28).

c)Participants in the Market
Securities and Exchange Commission (1999) to facilitate the saving and investment process in any economy, financial intermediaries must exist and in good number. The financial intermediary is essentially a middleman who pools funds form savers and passes on such funds to those in need of them. An intermediary is a specialist) professional) in his line of business and thus, heavily relied upon by his clients to make good investment judgement on their behalf or provide professional advisory services to them. The capital market has a wide array of intermediaries performing various intermediation functions. They include:

i)Issuing Houses: These are institutions which assist corporate bodies and governments to raise long-term funds by packaging security issues for subscription on their behalf. The issuing house by this function plays a central role in the issuance process, and in industrial development. The issuing house as the principal agent of and adviser to the issuer has the responsibility of advising its clients on the most appropriate instrument and method of sourcing the required capital. It also has the responsibility of assembling and coordination all other specialists required in the issue process, ensuring that statutory and all other requirements are met, and that the issue is properly packaged and successfully concluded. Packaging would include pricing of the securities, preparation of the prospectus and other documents, as well as marketing and distribution of the securities.

ii)Stockbrokers/dealers: These are major players in the secondary market. Stockbrokers are the only persons permitted to transact business on the floor of a stock exchange or on the over-the-counter market. A stockbroker, therefore, stands between the seller and buyer of registered securities, making it possible for both parties to realize their desire to buy or sell securities. To act as an agent of the public or deal in his own account, a stockbroker/dealer must be registered by the statutory regulatory agency (Securities and Exchange Commission) and licensed by the stock exchange. As an agent of his client, the stockbroker is under obligations to transact business for him at the best price obtainable in the market.

iii) Investment Advisers: These are institutions/persons registered by the statutory regulatory agency to provide investment advisory services to their client for a fee. Investment advisory services are incidental to stock broking and issuing house business.

iv) Portfolio Managers: These are institutions registered by the statutory regulatory agency to manage the portfolio of clients. Portfolio management entails the receipt of funds, sometimes very large sums, to be invested by the portfolio manager. Most often, the choice of investments are left to the manger who however must send periodic investment statements, to his client. In exercising his discretion, the manager must at all times, consider the best interest of his clients. Both investments advisory and portfolio management services require extensive economic/market analyses to guide investment decisions and advice to clients.

v) Registrars: These are institutions employed by companies to keep comprehensive registers of their members (shareholders) and creditors. In addition, they arrange annual general and extra-ordinary meetings for their clients; distribute stock/share certificates, annual reports, dividend warrants and notices of shareholders’ meetings. In cases of issue oversubscription, registrars dispatch surplus monies to subscribers.

vi) Trustees: These are important participants in debt issues and collective investment schemes such as unit trust. The trustee protects the interest of investors in debt instruments by monitoring and ensuring the fulfillment of the term of the trust deed.

vii) Receiving Agents: These are banks and stockbroking firms appointed by the issuing house to serve as centers for the distribution of offer applications forms, as well as for the receipt of subscriptions monies on behalf of the issuing house, for a fee.

viii) Receiving Bankers: These are banks designated by an issuer to receive proceeds of an issue on its behalf.

ix) Solicitors: These are law firms which either represent the issue or the issuer. In practice, two solicitors are required in a public issue of securities. These are the solicitor to the company (issuer) and the solicitor to the issue. The solicitor to the company among other things ensures that the memorandum and articles of association of the company are in consonance with legal requirements of a public company, and effect amendments where necessary. The solicitor would examine issue relating to the authorized capital, ensuring that it can accommodate the issue being proposed. Where a debenture stock is to be floated, the solicitor would make sure that the company has the borrowing power to do so. Generally, it is the duty of the solicitor to the company to ensure that the company complies with the provisions of the corporate law of the country (e.g. the Companies and Allied Matters Decree 1990 in Nigeria).

x) Auditors: These are the existing auditors of the company. In their capacity as the auditors, they provide historical perspective on the accounts of the company for inclusion in the prospectus.

xi) Reporting Accountants: These are firms of accountants which provide independent assessment of the accounts of the company. They review management forecast and examine the reasonableness or otherwise of such forecast. Based on their findings, the reporting accountants can recommend adjustments to the management forecast. They also prepare statement of indebtedness of the company, among other things.

Prerequisites to successful investing in stock

a)Selecting a Broker
According to Fischer and Jordan (2005) the investor’s first step in establishing a satisfactory relationship with a broker is to choose a firm that is suitable for his needs and to select a representative of the firm with whom he can work. In practice separating the two choices is hard, for if one has chosen a satisfactory firm but is unhappy with the representative, it is embarrassing to shift one’s account to another representative within the same firm. The brokerage firm should be a well-known and long-established institution. In selecting a firm an investor can ask for recommendations from his bank or from friends whose opinions he trusts.

b)Opening a Brokerage Account

This is an investment account, which is opened with the CSCS through a stockbroker. When this account is opened a client is issued with two numbers. The first number is called CSCS No.. It is computer-generated numbers allocated to a new shareholder. It is unique to each stock-broking firm. Although a shareholder can have as many accounts as the number of stockbroking firms he uses. Furthermore, CSCS No is alphanumeric which is used if you have to fill in public offers if you desire shares allotted to you to be credited to your account.

Investors Account No. is numeric which is used internally on the floor for trading. In other word, investors No. is the CHN represents the Clearing House Number assigned to every shareholder at the first point of entry into the CSCS system. He/She must have completed the CSCS — R005 Shareholders Particulars Form. They are to provide the same CHN to all subsequent stockbroking firms they may have transactions with for ease of reference.

Other Prerequisites to successful investing in stock include opening a Bank Account, access to Post office Box (P. O. Box), access to Phone and active E-mail Address.

Process of acquiring shares

According to Nigerian Investments and Securities Law Report [NISLR] (2004) shares could be acquired by six (6) main modes;
1) Public offer;
2) Rights offer;
3) Bonus;
4) Nominal transfer; i.e. Transfer of share by way of gift.
5) Transmission from a dead relation or friends or collective investments or investments previously held under a corporate name for a beneficiary; and lastly

6) By purchase on the secondary market.

In general, a prospective investor who wishes to purchase shares on the secondary market is expected to approach a stockbroker such as Newdevco with a request to purchase or to invest in shares at a secondary market. In response, the stockbroker asks the prospective client which stock/shares he/she intends to purchase. Where the client has a selected stock in mind, the stockbroker executes the order according to the expressed need or interest of the client/customer. (Kofa, 2004).

Kofa (2004) added that in a situation where a client does not know which stock/share to buy, the stockbroker explains and advises the client accordingly in detail the shares to invest in. Consequently the stockbroker gives the client the necessary share transfer forms and Central Security Clearing System (CSCS) (particulars of shareholder) for completion. These documents are used to lodge the shares at Registrars Department of the company and also to open the new CSCS account for the client. The shares requested by client to be purchased are normally paid for by Bank Draft or physical clash to a stockbroker, who will in turn given an official receipt for the draft value or cash collected. Thereafter, the stockbroker purchases the shares as requested by client. Whenever the transactions are fully consummated, the stockbroker shall forward the CSCS statement of stock position to the client as evidence of ownership of such shares.

Benefits of Central Security Clearing System (CSCS)

Nigerian Stock Exchange (2008) states the benefits of CSCS to the operation of the Nigerian Stock Exchange as follows:

a)To Investors
Investors statements of stock position are issued every quarter free of charge or on demand for =N=100.00.

Use of stock position as collateral for loan facility after T + 3 settlement cycle i.e. 4 working days. In effect, a statement of stock position is obtainable from CSCS 4 days after transaction.

Investors can speculate more and take advantage of capital appreciation in their investment because of the T+3 settlement cycle.
Reduced risk of loss of certificates.

b)Quoted Companies

Huge cost associated with the production of share certificates for transaction through the secondary market has been significantly reduced.

Before CSCS, a single transaction on a certificate led to the cancellation of the certificate and the issuance of as many as ten (10) certificates depending on allotments made. This is no longer so since few shareholders request for certificates.

Indeed, of the 400,000 shareholders who use CSCS system now, only 2,200 shareholders have requested for certificates to date.

Amalgamation/consolidation of several accounts for a shareholder on the register leading to reduction of cost to the company.

c)Stockbroking Firms
Prompt Inter-member money and stock-settlement are assured.
The problems associated with delivery of shares are minimize
Increased efficiency and profit
Reduction in operational cost.

Disposal of Shares

According to Kofa (2004) a shareholder who wishes to dispose his/her shares is expected to go to a licensed stockbroker only. A Stockbroker is seen as the authorized agent approved by the government to deal in shares, especially in the purchase or sale of shares on behalf of an individual, group or company. The original hare certificates or CSCS statement will be tendered to a Stockbroker who will issue the relevant forms for completion by the shareholder and then forwarded to company Registrars for signature verification. That is, confirm the ownership of the shares in the case of share certificate. However, in the case of CSCS statement, the stockbroker verifies his clients signature. After the confirmation of signature, the share is taken to the floor of, say, the Nigerian Stock Exchange for appropriate disposal. After the disposal contract, a note shall be raised appropriately and the net proceeds is remitted to the shareholder after commissions and statutory charges are deducted as approved by the Nigerian Stock Exchange.

Recent Development in the Nigerian Capital Market

There are two recent developments in the Nigerian Capital Market. First, is the launching the e-dividend payment system which would subsequently solve the problem of unclaimed dividends by the Securities and Exchange Commission (SEC).

According to Olamijulo (2008) the e-dividends payment system refers to the payment of dividend due to shareholders through electronic means into the shareholders nominated bank accounts. It implies same day clearance for dividend payment. He added that the system would enable shareholders receive their dividends on the same day, thereafter a confirmation letter of the dividend payment would be dispatched by the registrar. The e-dividend payment system would minimise cases of unclaimed dividends, eliminate dividend loss in transit, the forfeiture of dividends in the future and enhance the ability of shareholders to immediately access and utilize the proceeds of their investments.

Secondly, is the launching of e-allotment which will be fully operational from January 1, 2009. Ahmed, (2008) reported that the system is aimed at enabling the achievement of a certificate-less system in the Nigeria capital market.

E-allotment of shares as it is known is a process of direct credit of approved allotment on offers to the CSCS account of shareholders, as against the conventional issuance of share certificates. It is a process which will aid the achievement of certificateless transaction in the Nigerian capital market. (UBA Registrars, 2008)

The e-allotment is introduced as a result of postal services delays, and “the need to reduce costs in printing and dispatch of share certificates as well as to enable all investors in public offers speedily allotted shares.”

Conclusions and Recommendations

It can be concluded that in Nigeria, the only obstacle to stock investment is the low level of investors enlightenment on the benefits of the entire system, which has greatly affected the acceptance level negatively. Therefore, it is recommended that the regulatory agencies like the Nigerian Stock Exchange and Securities and Exchange Commission should continue to enlighten Nigerian especially, using major Nigerian languages on the gains of stock investment.

Sunshine Profits To Best Place To Get Reliable Advice About Gold Investment And Trading

For a long time now, gold has been considered to be one of the safest investment options and in the past few the soaring gold prices have proved the investors absolutely rise. However, gold investment in the current times is not as easy as it requires the investors need to consider the issues of great pricing, finding reliable sources for procuring the metal in its purest form and even the convertibility value at the time of gold trading. This is perhaps why a large number of investors are now opting to invest in gold mining stock which is not only extremely convenient but also quite profitable.

For the past several years, Sunshine Profits has been providing helpful advice to gold investors about not only the various factors that might affect gold prices but also about the most opportune moments to invest in gold mining stocks. Sunshine Profits gold mining stocks rank has in fact been used by many investors to estimate of their current holdings giving them a fair idea of whether or not their gold investment is proving profitable. This further enables the investors to take decisive action about whether or not they should hold on to their stocks for long term or trade them off for a marginal profit.

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The Great Debate With Timeshares

Timeshare Debate

When the topic of timeshares comes up during a conversation, it can often lead in to an incredibly awkward debate. These debates of course naturally evolve when you mix timeshare lovers with timeshare haters together in the same room. Like any debate, there are always two sides to the story. If you have purchased a timeshare recently, it is often difficult to hear anybody say anything negative about timeshares because you have just invested your life savings into that ownership, and for those who think that timeshares are the most absurd concept, you probably cant help but laugh at those crazy enough to buy one. By looking at this debate objectively, listening to both sides of the story, prospective buyers, timeshare owners, and anyone who has an opinion about everything can decide for themselves.

Good or Bad Investment?

This seems to be one of the hottest debates when it comes to timeshares. Weve all been to a timeshare presentation (or at least heard of one from someone we know,) and the salespeople always claim that timeshares are a great investment. Often times they even encourage potential buyers to purchase multiple weeks/units, using one of them as a rental property to collect enough to cover both maintenance fees. The other form of investment that is presented is the personal side. It is presented that even if you decide not to sell it; you are still making a personal investment into yours and your families lives.

The word investment in the simplest terms means to use your money in the hopes of making more money. So the best way to analyze this debate is to see how timeshare owners are doing in the resale market. Unfortunately the truth to this debate is not too difficult to uncover, a quick peek at eBay will show that timeshare are practically impossible to resell for any amounts of money. Timeshares on eBay are not moving at the list prices of $1 to $200. Not to mention the fact, that most of the timeshare listed on eBay were once sold at the retail value of $15,000 or more. The discrepancy of $15,000 to $1 is enough to know that timeshares do not have a financial investment appeal. However, a personal investment is something that each individual has to determine. Will it be beneficial for you and your family to go on vacation every single year? Would you and your family actually make sure to go each and every year? How much are you spending to go on vacation now, and is it more than what the maintenance fees would be? The conclusion that is easy to come to is that if a personal investment like a timeshare requires $15,000 on average to obtain, then you are most likely going to want it to be a sound financial investment as well.

Maintenance Fees

Those who love their timeshares will often be amazed at how little their vacations are costing them each year. Sometimes it can be as low as $250 for one week, and other times it can be $1,500, and whenever someone explains to them, Yea, but you had to pay thousands of dollars up front to get that deal, so are you really actually saving money? And heres where it all comes together. A timeshare lover will respond to a question like that with a, Sure, but my timeshare is real estate, so when I dont want it anymore, Ill be able to resell it and get that money back, and my vacations all these years have been incredibly cheap! We know now however, that timeshares dont have any resale value!

Maintenance fees also have a tendency to not stay fixed. More often than not, the fees increase every single year and there are also the risks of special assessments.