I daily watch CNBC & NDTV Profit on TV in India. Certain terms I don't understand. Are there any sites to understand these terms?
2007-08-17 01:29:17 · 1 answers · asked by SAKI B 1 in Business & Finance ➔ Investing
In the United States, portfolios offered to the public are regulated by the Investment Companies Act of 1940. Regulated investment companies -- mutual funds, closed end funds, unit investment trusts -- are offered to the general public. Certain investors, called "accredited investors," under the law can invest in non-regulated portfolios.
These non-regulated portfolios are truly "buyers beware" portfolios and are called "hedge funds." They were originally called hedge funds because they used various forms of portfolio insurance to protect investors. Now they are simply any unregulated portfolio.
Open interest regards option contracts. Option contracts are open while they exist. They are insurance contracts on the stock market. Open interest is the number of contracts outstanding at particular prices.
Liquidity is simply how easy it is to get out of the market when YOU want to. A liquid market is easy to exit, it can take seconds, an illiquid market can take months or even longer to exit.
Valuation is a catch phrase that no longer means anything. Valuation is supposed to mean the value of a firm based upon the discounting of its future cash flows at a given interest rate. Right now, it means what it is worth to somebody regardless of whether it makes sense.
2007-08-17 02:30:34 · answer #1 · answered by OPM 7 · 0⤊ 0⤋