INVESTMENT AND PORTFOLIO MANAGEMENT

The term __________ could be associated with the different activities, but the common target in these activities is to “employ” the money (funds) during the time period seeking to enhance the investor’s wealth.

_________ can be described as investment too, but it is related with the short-term investment horizons and usually involves purchasing the salable securities with the hope that its price will increase rapidly, providing a quick profit.

___________ are individuals who are investing on their own. Sometimes individual investors are called retail investors.

_______________ are entities such as investment companies, commercial banks, insurance companies, pension funds and other financial institutions. In recent years the process of institutionalization of investors can be observed.

Investors buy and sell financial assets and manage individual investment portfolio themselves.

Investors are buying or selling financial instruments of financial intermediaries (financial institutions) which invest large pools of funds in the financial markets and hold portfolios. It relieves investors from making decisions about their portfolio.

It can be defined as the existing investment vehicles in the market available for investor and the places for transactions with these investment vehicles. Thus further in this subchapter the main types of investment vehicles and the types of financial markets will be presented and described.

It is a characteristic of financial assets that is not shared by physical assets, which usually have low liquidity. It reflects the feasibility of converting of the asset into cash quickly and without affecting its price significantly.

These are all those which have a maturity of one year or less. It is often are defined as money-market instruments, because they are traded in the money market which presents the financial market for short term (up to one year of maturity) marketable financial assets.

It is debt instrument issued by bank that indicates a specified sum of money has been deposited at the issuing depository institution. Certificate of deposit bears a maturity date and specified interest rate and can be issued in any denomination.