Question: Question 1 1. How do you distinguish between IPOs and Seasonal Equity offering with clear examples of each. And how does a private placement is

Question 1

1. How do you distinguish between IPOs and Seasonal Equity offering with clear examples of each. And how does a private placement is different from right issues?

 

2. Describe the Portfolio management process? How does this process helps the portfolio performance

3. Let say you are at the age of 30 now  and if you invest  at the age of 40, with an investment of $100,000, how much do you accumulate at your retirement which at 65, if you earn an investment return of 7% per annum. Describe at least two factors  that influence of the accumulated value.

 

Question 2

1. Describe a classic example of fund management activities in Saudi Arabia. What are different types expenses that might affect your investment performance?

 

2. You are a trader, expecting the market to decline, therefore you decided to short sell 100 share of ABC company through a broker in the trading floor. Currently, the price  of the share is $50.. The initial margin is set for 50%, while the maintenance margin is 40%. If the price goes down to $60, will you receive margin call? Determine the price at which there will be a margin call? If the share price goes up to $55, what will be the rate of return?

 


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