An investment refers to the commitment of funds at present, in anticipation of some positive rate of return in future. Today the spectrum of investment is indeed wide. An investor is confronted with array of investment avenues. Among all investment, investment in equity is best high proportion. This is because the history of stock market world over is booms and bursts over night millionaires an instant pauper.
The Indian stock market has been no different. Memories of its crash of December 1990 are still there in the minds of many. After record rise in proceeding few years the index fell precipitously and investor loss heavily. This phenomenon repeated every now and then. Though the equity cult is fast spreading among the investor the hard fact is majority of stocks continue to remain volatile to date. All these are pointers to the fact that the investor market is no longer holding an olive branch to investor in equity. Much of the danger associated with it can be avoided and it need not be such nerve raking experience, provided one approaches it as a rational decision making process. In short Security analysis and portfolio management are hard work, requiring discipline and patience, and the work is not always rewarded with exceptional returns.
An investment is a commitment of funds made in expectation of some positive rate of return in future. An investor makes some sacrifice in the present in the hope of desiring benefits in future. The motive behind investment varies from person to person. Some people invest in order to gain a sense of power or prestige. Often the control of corporate enterprises is a driving motive. For most investor however their interest in investment is largely pecuniary to earn a return on their money. But the return on stock market security is subject to risk. Risk incase refers to the uncertainty surrounding actual realization of the rate of return offered by an investment. The time element refers to period of waiting required to reap the return. Accordingly early investment decision has three key aspects.
[...] A study of economic trends as indicated by rate of growth in gross national product, employment, aggregate corporate profits, interest rate, exchange rates, savings and investments, monsoon positions An analysis of the relationship between economic trends and economic policies and the stability of such relationships A study of world economic trends and their impact on Indian economy. Industry Analysis 1. Implications of projected growth in gross national product for various industries Implications of plan priorities and plan expenditure for various industries Vulnerability of an industry for government regulations, and control of prices and production Implications of industrial and fiscal policies of government for an industry Analysis of competitive conditions as reflected in any barriers to entry. [...]
[...] Fig .1-1 Growth rate of Sales of Computer and Software industry Fig .1-2 Growth rate of Dividend of Computer and Software Industry Pharmaceutical Industry The pharmaceutical industry is knowledge driven industry and is heavily dependent on Research and Development for new products and growth. However, basic research (discovering new molecules) is a time consuming and expensive process and is thus, dominated by large global multinationals. Global pharmaceutical market, western markets are the largest and fastest growing due to introduction of newer molecules at high prices. [...]
[...] Knowing these factors through comparing performances between the industry enables the investors to compare the industries and finally cam select the company which is having the opportunity for growth SCOPE OF THE STUDY The security analysis starts from broad environmental factors to the industry, which influences the share price and finally analyzing the company's potentiality by considering possible risks associated with securities. Since share price of the company is empirically found to depend up to 50% on the performance of the industry and the economy, studying those related field provide insights for selecting the securities. [...]
[...] It also markets internationally, two well-known packages, one for the distribution industry (DMAP) and one for retail banking (Banks 2000). And Company turned up with ISO 9000 certification. The Company has re-emerged as India's second most valuable company, replacing the FMCG heavy weight, HLL in the year 2000. The company has a joint venture in USA with KSA (Kurt Salmon Associates). KSA is a $40 million management consultancy company operating in ten cities of the USA and also in eight different countries. [...]
[...] The third part emphasizes on the companies within the Computer and Software industry, where comparison between Infosys, Satyam, Wipro, and HCL which are all highly traded in that related industry in the stock market, guides the investor for selecting appropriate security which is really doing well than other selected companies. Finally, the conclusions and suggestions at the end provides the proper guidelines which is drawn after analyzing the economy, industries and company enables the investors getting perspective above overall better performance industry and company OVERVIEW OF THE ECONOMY A top down analysis of the firm's prospects must start with a global economy. [...]
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