Question

Please provide 2-3 most important facts covering the issue. Please avoid using general statements (e.g. there is a lot of instability, too many wars, people are not sure, etc – tis type of answers will not be regarded as such)

The Global Investment Environment :

Investments and Investors:

Stages of Developing the Investment Project :

Securities: the markets in international dimension:

Stock Exchange: principles of operations :

Please answer the question Asap

Answer 1

1) Global Investment Environment: Since the 1990s the global investment environment has become quite conducive as there are many countries who are working hard to get investments in their country. The developing countries like India are supporting entrepreneurial ventures and making it easier to start business in their country. This leads to making the business environment more dynamic as they invite FDIs and FIIs in their country. The developed countries like the USA have on the other hand started implementing restrictions on foreign companies trading with them (eg: China) and trying to protect their local businesses.

2) Investments and Investors: There has been an increasing interest among the investors worldwide to increase their income by putting it in investments. The variety of investments have increased in variety and number as well. The risk taking capacity of the investor and the return that he/she is expecting will determine the investment in which he or she should invest. There are risky investments like futures and option contracts, as well as safe investments like fixed deposits.

3) Stages of developing an investment project: A project is an activity that has been done for the first time and it involves a large amount of money. The initial stages deal with the economic planning of the project. This is followed by planning the technical aspects of the project. Then there is a feasibility study conducted to understand whether the project can be practically implemented or not. The final stage is the implementation of the plan and making the investment in the project.

4) Securities: the markets in international dimension: The securities market is a good financial option for investment. There are diffeent types of securities markets where the investors earn money by buying and selling of securities. This can be done on a wide variety of securities like bonds, stocks, loans etc. It has now become a predominant way of investing as the global markets are easy to reach out due to technology and internet. However, the risk is also very high as they donot know much about how the economic and political factors will influence the market.

5) Stock exchange: Some of the major principles of operation of the stock exchange are diversification and buying and holding. Diversification means that tge investor should not keep his investments limited to a particular sector only. Instead it should be spread across a wide variety of stocks. Another principle is that the investor should have patience in holding the stock for some time after buying it so that the stock reaches its expected profit range.