Global Investment Guide
Economic sectors (also called industries) are the businesses that share related products or services.
Investors will investigate sector performance regularly to manage their asset portfolio.
11 major sectors of the stock market:
Stocks in financial markets (also called shares or equity) refer to the ownership certificate of the corporation.
Shareholders are investors who own the company’s stocks; they are entitled to share in the corporation’s assets and earnings.
Companies are issuing stocks to raise funds to invest in their businesses.
IPO (Initial Public Offering) is a process by which private companies sell their shares through the stock exchange.
Hedge funds, which are alternative investment funds, engage in a variety of strategies to generate absolute returns regardless of how the market goes.
Capital is pooled from accredited investors or institutional investors and managed with sophisticated portfolio structure and risk management techniques.
The global hedge fund industry’s AUM (assets under management) had risen to $3 trillion by 2015.
ETFs (exchange-traded funds) are pooled collections of investment funds; it’s a type of security tracking index, traded the same way as individual stocks.
For example, SPY (SPDR S&P500 ETF) is well known and tracks the S&P500 Index.
ETFs are traded on major stock exchanges, like the NYSE and Nasdaq, which have been available in the US since 1993 and in Europe since 1999.
As of March 2019, more than 5,000 ETPs (exchange-traded products) were trading in the US.
PPP (private placement program) is regarded as a sophisticated financing program for accredited wealthy investors and institutions, usually offering higher returns than the open markets.
Programs are non-public offerings and based on invitation only, detailed financial information is not disclosed and does not require a prospectus.
Generally funding a round of securities and considered an alternative to an IPO.
Private placements have become an ordinary way for mainly technology startups to raise capital without “going public.”