investments at Stock Research

Channel Islands Stock exchange (CISX/Exchange) has begun the activity in 1998 and renders services under the admission of securities to the trades (listing), and also on over-the-counter trading of securities. CISX/Exchange developed the accelerated rates, and for December, 31st, 2004 its market capitalization has made 28 billion US dollars.
For May, 31st, 2005 800 companies have passed procedure of listing. CISX/Exchange offers an individual approach and fast process of processing of applications on the admission of securities on the innovative and highly controllable market. CISX/Exchange specializes on following services:
- services of experts on carrying out of operations with securities (including the Eurobonds, the structured duty and guarantees);
- investment funds;
- primary and secondary listing of securities and the actions emitted by the companies of Channel Islands and the foreign companies;
- depositary receipts which are given out by Channel Islands.
CISX/Exchange has the site in the Internet where the detailed review of sponsors of listing and the securities quoted at a stock exchange is given. The market information and quotations of the prices, is published worldwide on the pages of agency Reuters devoted to the CISX/Exchange.
CISX/Exchange has a favorable mode of listing of those securities in which the limited number of the investors (well understanding questions of investments) trades.
With the introduction in July of the Instruction of EU on Market Frauds, heightened interest to the securities which are quoted on CISX/Exchange as Channel Islands are not a part of EU so, CISX/Exchange is not the market adjustable by the given Instruction is observed.
CISX/Exchange has competitive prices, an effective turn of documents with the purpose of consideration of applications within 48 hours, and also keeps work with emitters and sponsors of listing on a flexible and commercial basis. The similar attitude is reflected in all aspects of listing from requirements about disclosing the information before accommodation of methods of introduction of innovative structures.
Though CISX/Exchange is situated at the territory of the Europe, and time of carrying out of its trades coincides with London time, it is not adjusted EU.
CISX/Exchange has a plenty of official international recognitions, for example:
• It is adjusted by the Commission on granting Financial Services of Guernsey which is the participant of the International Organization of the Commissions under securities;
• Is the recognized stock exchange according to section 841 of the Law on the income and corporate tax of the United Kingdom from 1988, hence, the debt securities quoted on CISX/Exchange, can be considered as quoted Eurobonds for the purposes of the taxation in the United Kingdom, percent on which are paid up to a deduction of taxes;
• Management of Financial Services of the United Kingdom has approved activity CISX/Exchange as an investment stock exchange within the limits of the Law on Financial Services and the Markets from 2000;
• CISX/Exchange is a related member of the International Organization of the Commissions under securities;
• The stock exchange is recognized by the Commission under securities and stock exchanges of the USA as an offshore securities market according to the Rule 902 (c) of the Law on securities of 1933;
• It is officially recognized by the Australian Stock exchange;
• CISX/Exchange is registered in the World Federation on Stock exchanges as “the market which is meeting the requirements”;
• The stock exchange is a member of the European Forum on maintenance and financing of securities.
Applications on reception of the quotation on CISX/Exchange move through the sponsor who is the member of CISX. The given stock exchange provides accelerated “the equivalent approach” to process of applications on reception of the quotation of securities. It means that by consideration of the similar application documents on reception of the listing, prepared for jurisdiction or the stock exchange recognized CISX/Exchange provided that the information containing in documents of a similar sort, essentially did not change can be used. Process of applications on reception of the quotation has four stages.
1. The sponsor and the emitter prepare and hand over the initial application, including the project of the document on reception of the quotation. CISX/Exchange usually loyally approaches to consideration of documents if requirements about disclosing a special sort of the information are not observed owing to presence of circumstances from the emitter. For submission of applications on secondary listing already available documents on reception of the quotation in the primary market can be used. At the given stage all corresponding projects of powers of attorney on management of the property and other financial tools serving by maintenance of debt securities, or components of those also are a subject to check.
2. Check of applications (usually within 48 hours) is spent, and then the sponsor at the coordination with the emitter gives answers on emerged questions.
3. The sponsor submits a final variant of the application which considers Management of the Share Market.
4. After reception of approval of Management of the Share Market documents on reception of listing are registered, and securities are brought in the official list of quotations of a stock exchange. The official information of listing are published in the form of the official application, and process of fulfillment of the trades and commercial transactions begins.
To pass all four stages from the initial application before reception of listing it is possible for 10 days, though CISX/Exchange can accelerate this process, proceeding from commercial reasons.
The sponsor of listing promotes the emitter in preparation of all documents, submits them in CISX/Exchange and keeps in contact with CISX/Exchange concerning any inquiries which can act in connection with process of reception of the quotation.
A necessary condition for reception of listing is that the emitter carries out the obligations according to Rules of listing and other duties concerning given procedure. Besides observance of special Rules of listing, the emitter is obliged to inform the public, CISX/Exchange and holders of securities of the company on occurrence of any important data concerning the emitter, allowing the public and owners of securities correctly define a financial position of the emitter, to avoid creation of a false securities market, and also possible negative influence on activity of the market and cost of securities.
The further requirements include granting CISX/Exchange of spears of annual reports, audit or other financial reports of the emitter, and also disclosing CISX/Exchange of the information on any changes of the rights provided by debt securities of the emitter, quoted on a stock exchange. Emitters should hand over copies of the announcements containing the information on debt securities, included in listing, for check by Channel Islands Stock exchange before their publication.

Company Royal Philips Electronics undertakes to return to shareholders nearby 4 billion euro by the end of 2007 at sale of 80.1% of stocks of operation Philips Semiconductors which are letting out semiconductors. As it is marked in the message of the company, shareholders will receive money by means of payments of dividends and the return repayment of stocks, including already announced repayment of stocks on July, 17th 2006 for the sum of 1.5 billion euro.
As it was informed earlier, Royal Philips Electronics has agreed to sell 80.1% of stocks of the operation on manufacture of semiconductors to a consortium of private investors for 6.4 billion euro (8.2 billion dollars). The consortium included American joint-stock companies Kohlberg Kravis Roberts both Co. and Silver Lake Partners, and also Dutch AlpInvest Partners NV. According to conditions of the transaction, 19.9% of stocks of division will remain in property Philips.
As it is marked in press release of Philips, the company follows strategy on reinvestment of the capital for reception of additional profit, including through favorable purchases. For last 12 months Philips has declared 8 purchases in sphere of medical systems, illumination and public health services for which it has been spent 3.5 billion euro. The given investments have already been repaid at a rate of almost 1 billion euro. Philips also has confirmed intention to leave structure of concerns LG.Philips and TSMC. “With this transaction we have actually finished begun still in 2002 reorganization of the company with the purpose of creation of business steadier and bringing the stable income”, - was emphasized by the president of company Philips Gerard Kleisterlee. As he said, in this connection the name of the company will be changed on Royal Philips.
Gerard Kleisterlee has specified that resources Philips will be concentrated to public health services, needs in effective energy-saving decisions and increasing desire of consumers to improve style of a life. In opinion of the president of the company, all this will allow to redefine Philips in the company generating values, unlike historically developed image of the manufacturer of electronics.
Royal Philips Electronics of the Netherlands - one of the largest manufacturers of electronics in the world and the largest in the Europe. A sales volume in 2005 has made 30.4 billion euro. The basic line of activity of the company is care of health, style of a life and technology. The company is presented more than in 60 countries of the world and has 158 thousand of employees.

Motorola Inc has redeemed the common stocks for the sum nearby 1.2 billion dollars, the press-service of the company informs about it. Thus, the company has finished the program of the repayment of own stocks for a total sum of 4 billion dollars, declared on May, 18th 2005. As it is marked in the press release, this program became first the initiative under the repayment of own stocks in history of company Motorola.
Company Motorola will immediately pay 1.2 billion dollars and will receive the basic part of these common stocks within three weeks. The concrete quantity of the stocks which are a subject of repayment will pay off proceeding from the average cost of common stock of Motorola for the period of validity of the agreement on the accelerated repayment of actions and according to stipulated minimal and maximum quantity of stocks. On preliminary data, the repayment of last tranche of stocks will be made in 1st quarter of 2007. All the redeemed stocks will be extinguished. In the company have informed, that the board of directors of Motorola has made a decision on the repayment of additional quantity being in circulation own common stocks for the sum up to 4.5 billion dollars during the nearest 36 months provided that the condition of the market will favour to it. On present share price Motorola the sum of 4.5 billion dollars corresponds approximately 9 % of the general market capitalization of the company. “We have finished the program of the repayment of own stocks first in the history almost for two years before the planned term and at once have made a decision on establishment of second such program”, - financial director of Motorola David Devonshir has declared.
As the press-service of the company informs, within the limits of new program of Motorola periodically will carry out the repayment of the actions for cash money resources both in the open market, and in the private order, according to the federal legislation of the USA on securities. The volume and terms of the repayment will be defined by a company management on the basis of an estimation of position in the market, cost of stocks and other factors. The program of the repayment of stocks can be at any moment suspended or stopped. As of July, 1st 2006 the sum of money resources, their equivalents and short-term investments of company Motorola was estimated approximately in 14.4 billion dollars, and volume of net money resources - in 10.1 billion dollars.

Yesterday when I read the news-block I thought why I couldn’t discuss the current news in my blog. So I’ve tried to find the most interesting news for investors.
Wienerberger Brick
The European Reconstruction and Development Bank have allocated Austrian Wienerberger 13.3 million euros for building and construction of brick-making plant in the Russian Federation.
 About it is spoken in the message of bank. The European Reconstruction and Development Bank has purchased 18.1 % of stocks of limited liability company “Wienerberger Brick” (Russia) for 2.5 million euros and has granted a loan in 10,8 million euros on payment of debts. The rest of means in construction (which total cost is estimated in 38 million euros) will put Wienerberger AG.
The factory will make nearby 120 million facing bricks per year or 220 million hollow bricks. The given project - a part of the joint program of the European Reconstruction and Development Bank and Wienerberger under investments into manufacture of building materials into the countries where the bank works.
The Austrian group company Wienerberger was based in the Vein in 1819. And now it is the world leader on manufacture of a hollow and facing ceramic bricks. The group company has more than 230 factories in 24 countries of the world.

Sadia
Company Sadia S.A., one of leading manufacturers of meat products and semi-prepared foods in Brazil, has proposed purchase of 50 % of stocks of Perdigao S.A for 1,7 billion dollars. Such data are resulted in the press release of the company published today. Cost of the transaction is estimated in 3.7 billion real (1.7 billion dollars). According to conditions of the offer, Sadia it is ready to pay 27.88 real (12.58 dollars) for each current stock Perdigao. Offered to Sadia price exceeds on 35 % cost of stock Perdigao on results of closing of the share trades in the San Paulo Stock Exchange. Term of the offer expires on October, 24th 2006. As it is marked in press release of Sadia, as a result of merge in the international market of meat products and semi-prepared foods there will be a new leader. Net profit Sadia on results of 2005 has been 656.12 million Brazilian real (307.88 million dollars).

Wimm–Bill–Dann
Shareholders of public corporation “Wimm–Bill–Dann Food stuffs” (WBD) at extraordinary meeting will consider the problem on expulsion of Jamshid Jadegardzham from structure of board. As they say in message WBD, it is offered to shareholders to consider the given question under the recommendation of chairman of board of the company of Toni Mahera. Only those shareholders have the right to take part in assembly, who was registered artificially of July, 2006. The Date of ending of reception of bulletins for voting is September, 1st 2006. Also it is offered to shareholders to approve creation of branches “Wimm–Bill–Dann” in Samara, Tuimazy, Novosibirsk, Rubtsovsk, Krasnoyarsk, Irkutsk.
Ownership capital of WBD is 880 millions of rubles. In circulation there is 44 million ordinary stocks (face value 20 rubles). The principle shareholders of the company as of end of 1st quarter of 2006 are Gabriel Jushvaev - 17,13 %, Sergey Plastinin - 9,30 %, David Jakobashvili - 8,33 %, Michael Dubinin - 5,71 %, in nominal holding of shares at Deutsche Bank Trust Company Americas is 39,99 % of stocks of the company.
Public corporation “Wimm–Bill–Dann Food stuffs” was created in 1992. And now it is engaged in manufacture of juices and dairy products in Russia. Into the company enter 30 industrial enterprises which are being 21 regions of Russian Federation and the CIS. “Wimm–Bill–Dann” owns the portfolio of trade marks covering from above 1 thousand of 100 types of dairy products (”Domic v derevne”, “Milaya Mila”, Neo, Bio-max, etc.) and more than 150 types of juices, nectars and soft drinks under marks “J7″, “100 % Gold”, etc. Net profit of public corporation “Wimm–Bill–Dann” on US GAAP in 2005 has increased for 31.7 % - up to 30.3 million dollars.

GoAir
Indian airline GoAir and planemaker Airbus have signed the agreement on purchase of 10 planes A320, press-service Airbus informs. Moreover the contract gives GoAir an opportunity of purchase in the future ten similar planes. The financial component of the transaction and terms of deliveries of planes are not informed.

While I looked for different interesting information for my blog I collected many useful links for me. And I hope it would be useful for you too…
Exchanges in different countries:
Australia
Australian Stock Exchange: http://www.asx.com.au/
Sydney Futures Exchange: http://www.sfe.com.au/
Austria
Vienna Stock Exchange: http://www.vienna-stock-exchange.at/ 
Azerbaijan
Baku Stock Exchange: http://www.bse.az/

Belgium
Brussels Stock Exchange: http://www.stockexchange.be/
Belgium Options and Financial Futures Exchange: http://www.belfox.be/
NASDAQ Europe: NASDAQ Europe 
Brazil
Rio de Janeiro Stock Exchange: http://www.bvrj.com.br/
Sao Paolo Stock Exchange: http://www.bovespa.com.br< TD>
Brazil Futures Exchange: http://www.bbf.com.br/
Commodity and Futures Exchange: http://www.bmf.com.br/ 
Canada
Toronto Stock Exchange: http://www.tse.com/
Montreal Exchange: http://www.me.org/
Vancouver Stock Exchange: http://www.vse.ca/
Winnipeg Commodity Exchange: http://www.wce.mb.ca/ 
People’s Republic of China
Peking Commodity Exchange: http://bcewww.cnfm.co.cn/
Shanghai Metal Exchange: http://www.sme.com/ 
Chile
Santiago Stock Exchange: http://www.bolsantiago.cl/ 
Czech Republic
Prague Stock Exchange: http://www.pse.cz/ 
Columbia
Occidental Stock Exchange: http://www.bolsadeoccidente.com.co/
Croatia
Zagreb Stock Exchange: http://www.zse.hr/ 
Denmark
Copenhagen Stock Exchange: http://www.xcse.dk/ 
Ecuador
Guayaquil Stock Exchange: http://www.bvg.fin.ec/ 
Estonia
Tallinn Stock Exchange: http://www.tse.ee/
Finland
Helsinki Stock Exchange: http://www.hse.fi/
Finland Option Market: http://www.som.fi/
Finland Option Exchange: http://www.foex.fi/ 
France
Paris Stock Exchange: http://www.bourse-de-paris.fr/;  http://www.nouveau-marche.fr/
International French Futures and Options Exchange: http://www.matif.fr/ 
Germany
Germany Stock Exchange: http://www.exchange.de/
Bavaria Stock Exchange: http://www.bayerischeboerse.de/
Stuttgart Stock Exchange: http://www.boerse-stuttgart.de/ 
Great Britain
London Stock Exchange: http://www.londonstockex.co.uk/
Investment Exchange Trade point: http://www.tradepoint.co.uk/
International Petroleum Exchange: http://www.ipe.uk.com/
London International Financial Futures Exchange: http://www.liffe.com/
London Metal Exchange: http://www.lme.co.uk/ 
Greece
Athens Stock exchange: http://www.ase.gr/ Hong-Kong
Hong-Kong Stock Exchange: http://www.sehk.com.hk/
Hong-Kong Futures Exchange: http://www.hkfe.com/
Hungary
Budapest Stock exchange: http://www.bce-bat.com/ 
India
Indian National Stock Exchange: http://www.nseindia.com/ Indonesia
Jakarta Stock Exchange: http://www.jsx.co.id/
Surabaja Stock Exchange: http://www.bes.co.id/ 
Iran
Teheran Stock Exchange: http://www.neda.net/tse 
Israel
Tel Aviv Stock Exchange: http://www.tase.co.il/ 
Italy
Italy Stock Exchange: http://www.borsaitalia.it/
Italian derivatives market: http://www.borsaitalia.it/
Jamaica 
Jamaica Stock Exchange: http://www.jamstockex.com/ 
Japan
Tokyo Stock Exchange: http://www.tse.or.jp/
Osaka Stock Exchange: http://www.ose.or.jp/
Nagoya Stock Exchange: http://www.nse.or.jp/
Tokyo International Financial Futures Exchange: http://www.tiffe.or.jp/jpn.html
Tokyo Grain Exchange: http://www.tge.or.jp/
Latvia
Riga Stock Exchange: http://www.lanet.lv/business/rfb 
Luxemburg
Luxemburg stock Exchange: http://www.bourse.lu/ 
Malaysia
Kuala Lumpur Stock Exchange: http://www.klse.com.my/ 
Mexico
Mexico Stock Exchange: http://www.bmv.com.mx/ 
Namibia
Namibia Stock Exchange: http://www.nse.com.na/
New Zealand
New Zealand Stock Exchange: http://www.nzse.co.nz/
New Zealand Futures and Options Exchange: http://www.nzfoe.co.nz/ 
Nigeria
Nigeria Stock Exchange: http://www.mbendi.co.za/exng.htm 
Norway
Oslo Stock Exchange: http://www.ose.no/
Paraguay
Asuncion Stock Exchange: http://www.pla.net.py/bvpasa 
Peru
Lima Stock Exchange: http://www.bvl.com.pe/ 
Poland
Warsaw Stock Exchange: http://www.wse.com.pl/ 
Portugal
Lisbon Stock Exchange: http://www.bvl.pt/ 
Republic of Korea
Korea Stock Exchange: http://www.kse.or.kr/ 
Republic of South Africa
Johannesburg Stock Exchange: http://www.jse.co.za/
South-African Futures Exchange: http://www.safex.co.za/ 
Russia
Russian Exchange: http://www.re.ru/
Russian Trade System: http://www.rtsnet.ru/
Siberia Stock Exchange: http://www.sse.nsk.su/
Saint Petersburg Stock Exchange: http://www.spbex.ru/
Moscow Interbank Currency Exchange (MICEX): http://www.micex.ru/
Saint Petersburg Futures Exchange: http://www.futures.ru/ 
Singapore
Singapore Stock Exchange: http://www.ses.com.sg/
Singapore International Monetary Exchange: http://www.simex.com.sg/
Singapore Commodity Exchange: http://www.sicom.com.sg/ 
Slovakia
Bratislava Stock Exchange: http://www.bsse.sk/ 
Slovenia
Lublin Stock Exchange: http://www.ljse.si/
Lublin Commodity Exchange: http://www.eunet.si/commercial/bbl/bbl-ein.html 
Spain
Madrid Stock Exchange: http://www.bolsamadrid.es/
Barcelona Stock Exchange: http://www.borsabcn.es/
Bilbao Stock Exchange: http://www.bizkaia.net/Bizkaia/English/General_information/Economy/I3EBOLSA.HTM
Spanish Futures Exchange: http://www.meff.es/
Spanish Options Exchange: http://www.meffrv.es/
Valencia citrus and commodity futures market: http://drac.medusa.es/fcm/index.htm 
Sri Lanka
Colombo Stock Exchange: http://www.lanka.net/cse 
Sweden
Stockholm Stock Exchange: http://www.xsse.se/ 
Switzerland
Switzerland Exchange: http://www.bourse.ch/
Switzerland Financial Future and Options Exchange: http://www.bourse.ch/ 
Taiwan
Taiwan Stock Exchange: http://www.tse.com.tw/ 
Thailand
Thailand Stock Exchange: http://www.set.or.th/ 
The Netherlands
Amsterdam Exchange: http://www.aex.nl/
Association of options traders: http://www.otc.nl/
The USA
New-York Stock Exchange: http://www.nyse.com/
Stock Market NASDAQ: http://www.nasdaq.com/, http://www.nasd.com/
American Stock Exchange: http://www.amex.com/
Boston Stock Exchange: http://www.bostonstock.com/
Chicago Stock Exchange: http://www.chicagostockex.com/
Philadelphia Stock Exchange: http://www.phlx.com/
Coffee, Sugar and Cacao Exchange: http://www.csce.com/
Kansas City Trading Floor: http://www.kcbt.com/
MidAmerica Commodity Exchange: http://www.cbot.com/
Minneapolis Grain Market: http://www.mgex.com/
New-York Cotton Exchange: http://www.nyce.com/
New-York Merchant Exchange: http://www.nymex.com/
Turkey
Istanbul Stock Exchange: http://www.ise.org/
Venezuela
Caracas Stock Exchange: http://www.caracasstock.com/ 
Financial portals: 
http://www.cbsmarketwatch.com/ –on-line news, comments, results of trading, calendars, statistics.
biz.yahoo.com – the first portal in the financial sphere.
http://www.cnnfn.com/ – the quantity or information isn’t less as at the previous portals, but here are emphasized the main news.
Financial news:
http://www.bloomberg.com/ – unexcelled on-line news.
http://www.cnnfn.com/, http://www.cbsmarketwatch.com/, http://www.reuters.com/, http://www.ft.com/ – news of world agencies.
http://www.forexnews.com/ – news, comments, analysis of market, etc.
Financial institutions:
http://www.wcoomd.org/ – exact information  about all international economic and financial and credit organizations.
Quotations and graphics:
http://www.quote.com/ – real quotations of American stocks of all trading floor 10 minutes delayed.
http://www2.barchart.com/default.asp - a lot of quotations and graphics, analysis, comments and much other useful information.
http://www.saavycharts.com/ – great daily technical analysis of NASDAQ
Investments games:
http://www.etrade.com/cgi-bin/gx.cgi/AppLogic+gamestartpage – tournament of traders from E*Trade (real quotations 15 minutes delayed).
http://www.nasd.com/HeadTrader/head_trader.htm – imitation of work of market maker at NASDAQ.
http://contest.finance.yahoo.com/t1– Investment Challenge from Yahoo Finace (real quotations 15 minutes delayed).
http://www.virtualstockexchange.com/ – the same as the previous, but you have a choice to organize   your own tournament.
Others useful links:
http://www.americanbulls.com/ - commentary and data for all the securities in the North American stock markets.
http://www.mumbaibull.com/ - tips on investing in stock markets.
http://stockmarketonline.info/ – a good site if you want to invest your money online.
http://www.canadian-stocks.com/ - online financial resource about Canada.
http://www.quotelf.com/ - free historical stock, mutual funds daily quotes for US and Canadian markets.
http://www.valuenotes.com/asps/Fundas.Asp?Cat=F - finance, investments, investing company India, and much other information.
http://www.valuenotes.com/asps/marketalk.Asp?Cat=T - Indian stock markets index, finance business regulations, investors, derivatives, etc.
http://www.worldwidese.com/ - selected stock markets around the world.
http://www.stock-money-maker.com/ – here you can buy and sell stocks on a quantitative approach that has been back tested on a 20 year period.
http://www.angelfire.com/or/stocks/ - here you can find all of the strategies, insider tips, and trading philosophies necessary to conduct online trading successfully.
http://www.futurestech.com/default.htm - analysis of livestock, financial and equity futures markets…
http://www.investtrek.com/ - all useful resources to research and find information on stocks and mutual funds.
http://www.stockcharts.com/ - graphics and analysis of the major markets and sectors.
http://www.geocities.com/rodeodrive/mall/3087/ - stock market quotes, investments, trading, stock picks…
http://www.picapital.com.my/ - analysis and evaluation of stock…
http://www.metamarkets.com/ - discussing stocks, mutual funds, and investment strategy.
http://www.fun-e.com/ - a good laugh after a hard day dealing and trading on the stocks and equities markets.
http://www.concentric.net/~L77280r/DIARYHDG.HTM - a free Speculators Diary shows the investor / speculator…
http://www.stockmaven.net/ - stock research center, real time quotes and news, live financial markets data, research tools to evaluate and track stocks of publicly held…
http://www.ibchannel.com/channels/marketresearch/ - the markets and market mechanics, investment approaches, valuation techniques…
Also I want to propose such links as:
1) Day Trading
http://www.swingtrades.com/
http://www.absolutedaytrader.com/
http://www.rookiedaytrader.com/
http://www.daytraderfutures.com/
http://www.daytraderfutures.com/
2) Penny Stocks
http://www.daytraderfutures.com/
http://www.daytraderfutures.com/
http://www.pennystocks.net/
http://pennystockinsider.com/
3) General Investing
http://pennystockinsider.com/
http://www.investopedia.com/
http://www.investing-strategies.com/
http://www.investorguide.com/
 If you have others links you are welcome…:)

Investor… We use this word quite often. But what does it mean?..
Investors may be organizations or individuals. Organizations as institutional investors buy securities with their funds or funds held in trust for others. Major institutional investors are insur¬ance companies, pension funds and universities. Insurance com¬panies make their investments generate profits and funds for paying future insurance claims. A pension fund wants to make money on its investments so that it can pay off pensioners.
The other types of investors are individuals who trade secu¬rities for their own accounts. The majority of personal investors have rather small stock portfolios usually valued at less than $50,000. They often use these funds for major purchases such as a home, retirement income, or as a source of cash in case of emergency.
The objectives of investors can be identified in terms of speculation, growth, and income.
Some investors set an objective of achieving big payoffs. They engage in speculation, or assuming large risks in the hope of large returns. One of the ways to speculate is to buy “penny stock”. It is highly speculative stock that sells at less than $5. A $1 stock that is in high demand may rapidly run up to $3 thus tripling the initial investment. “Penny stock” is typically a share in new ventures.
More investors are interested in long-term growth in the value of their investment. They tend to prefer the so-called blue chip stocks of large, high quality companies such as IBM, General Motors, and American Express. The dividend for blue chip stocks is rather low because these firms reinvest much of their profits in research in order to remain competitive.
Some investors seek income. They are interested in a stock’s yield, which is the percentage return from stock dividends. Utility stocks provide the highest regular yields because they have minimal risk. The investors take risk only within certain limits. Common stock is less safe than preferred stock because preferred stock¬holders receive dividends before they are paid to the common stockholders. In the case of common stock, utilities are safer than high tech stock. The safest type of securities is government bond because the government backs it.

Yesterday, when I wrote my last article I had a brain-wave. Perhaps common stocks aren’t the best asset to invest money. And I decided to investigate a question about investments in such securities as stock index futures…
As far as I understand investments in stock index futures are similar to investments in weather futures. You should forecast. And your profits or losses depend on your ability to make good prognoses.
It is necessary to remember that the subject of an agreement of stock index futures is purchase and sale of portfolio of stocks; stocks that go to make up this stock index.
Stock index futures show the dynamics of the stock market or its part (for example, S&P and Dow Jones Transportation Average).
As with ordinary future contracts stock index futures can be used as instruments of speculation or hedge buying.
The example of speculative operation with stock index futures can be:
You have $100000 and the forecast is that the index S&P will grow. Let us suppose that the margin requirement is 5%. Dynamics of index (during the position is open) is: 1230
1245
1240
1256
1270
1263
1275
Price of future contract (when we open position) is: 1230*$500=$615000, margin requirement is $30750, so we buy 3 future contracts. The results of this operation per day are:
1st day: (1245-1230)*500*3=$7500 (profit)
2nd day: (1240-1245)*500*3=$7500 (loss)
3rd day: (1256-1240)*500*3=$24000 (profit)
4th day: (1270-1256)*500*3=$21000 (profit)
5th day: (1263-1270)*500*3=$10500 (loss)
6th day: (1275-1263)*500*3=$12000 (profit)
The payments under the stock index futures clear each day the position is open. And if you bear losses you should insert money on your margin account.
The result of our operation is: (1275-1230)*500*3=$52500!!!
So, to my mind it’s very profitable activity to invest your money in stock index futures:).

Equity market is a great part of financial market, that’s why it’s very important to understand what does mean the term financial market.
Financial markets provide a forum in which suppliers of funds and demanders of loans and investments can transact business directly. Whereas the loans and investments of institutions are made without the direct knowledge of the supplier of funds (savers), suppliers in the financial markets know where their funds are being lent or invested. The two key financial markets are the money market and the capital market. Transactions in short-term debt instruments, or marketable securities, take place in the money market. Long-term securities (bonds, stocks, etc.) are traded in the capital market.
The money market is created by a financial relationship between suppliers and demanders of short-terms funds, which have the maturities of one year or less. The money market exist because certain individuals, businesses, governments and financial institutions have temporarily idle funds that they wish to put in some type of liquid assets or short-term, interest-earning instruments. At the same time, other individuals, business, governments and financial institutions find themselves in need of seasonal or temporary financing. The money market thus brings together this suppliers and demanders of short-term liquid funds.
The capital market is a financial relationship created by a number of institutions and arrangements that allows the suppliers and demanders of long-term funds – funds with maturities of more than one year – to make transactions. The backbone of the capital market is formed by the securities exchanges that provide a forum for debt and equity transactions. Major securities traded in the capital market include bonds and both common and preferred stock.
All securities, whether in the money or capital markets, are initially issued in the primary market. This is the only market in which the corporate or government issuer is directly involved in the transaction and receives direct benefit from the issue – that is, the company actually receives the proceeds from the sale of securities. Once the security begins trade among individuals, businesses, governments or financial institutions, savers and investors, they become part of the secondary market. The primary market is the one in which “new” securities are sold; the secondary market can be viewed as an “issued” or “preowned” securities market.
During the last two decades the Euromarket – which provides for borrowing and lending currencies outside their country of origin – has grown quite rapidly. The Euromarket provides multinational companies with an “external” opportunity to borrow or lend funds with the additional feature or less government regulation.

The capital of a business consists of the funds used to start and run the business. The funds can be either the owner’s (equity capital) or creditor’s (debt capital). Equity capital consists of those funds provided to the business by the owner’s. These funds come from the personal savings of the owner. Debt capital consists of borrowed funds that the business owner owes to the lender. With debt capital the entrepreneur doesn’t have to share ownership, but has a legal obligation to repay the borrowed money (principal) plus interest at a future date even if the business does not make profit.
Equity financing (obtaining owner funds) can be exemplified by the sale of corporate stock. In this type of transaction, the corporation sells units of ownership known as shares of stock. Each share entitles purchaser to a certain amount of ownership. For example, if someone buys 100 shares of stock from Ford Motor Company, that person has purchased 100 shares worth of Ford resources, materials, plants, production and profits. The person purchases shares of stock is known as stockholder or shareholder.
All corporations, regardless of their size, receive their starting capital from issuing and selling shares of stock. The initial sales involve some risk on the part of the buyers because corporation has no record of performance. If the corporation is successful, the stockholder may profit through increased valuation of the shares of stock, as well as by receiving dividends. Dividends are proportional amounts of profit usually paid quarterly to stockholders. However, if the corporation is not successful, the stockholder may take losses on the initial stock investment.
Often equity financing does not provide the corporation with enough capital and it must turn to debt financing, or borrowing funds. One example of debts financing is the sale of corporate bonds. In this type of agreement, the corporation borrows money from investor in return for bond. The bond has maturity date, a deadline when the corporation must repay all of the money it has borrowed. The corporation must also make periodic interest payment to the bondholder during the time the money is borrowed. If these obligations are not met, the corporation can be forced to sell its assets in order to make payments to the bondholders.
So the investments in bonds are less profitable, but at the same time less risky for investor. Although for issuer is more preferably to obtain capital through issuing shares of stock.
All businesses need financial support. Equity financing (as in the sale of stock) and debt financing (as in the sale of bonds) provide important means by which a corporation may obtain its capital.

To my mind, first of all I should gain an understanding of types of securities. As far as I know there are many types of securities. And how can I choose some of them with the highest expected return and liquidity and the lowest risks? I want understand why I should buy or sell exactly this or that type of security. So let’s try to investigate…
            In theory there are several groups of securities:

• Equity Securities;
  
• Fixed Income Securities;
  
•  Investment Funds;
  
• Units & Trusts;
  
• Options, Warrants & Rights;
  
• Futures Contracts.
  

So, equity securities: common shares, restricted voting shares, preferred shares, flow-through shares.
As far as I understand securities of this group have practically the same liquidity. As for expected return: the capital gains potential of common shares is usually higher than for preferred shares of the same company. And return on flow-through shares will depend on the potential tax benefits to the investor. Then risks… The most risky securities of this group are flow-through shares, if I’m not mistaken. But all risks of all of them are moderate to high. So among securities of this group I’ll choose common shares. To my mind the balance of return and risks is the best!
The second group: savings bonds, bonds, debentures, treasury bills (T-bills), Guaranteed Investment Certificates (GICs).

If I’m not mistaken investment of money in treasury bills is more profitable. Yes, among securities of this group I will choose exactly treasury bills.
            The third group and investments funds: shares or units of Mutual Funds, shares or units of Closed-End Investment Funds, units of Segregated Funds and shares of Labour-Sponsored Investment Funds.

Then go units and trusts: limited partnership units and trust units.

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