BREAKING ALL THE RULES!  Exclusive World Class Investments to Stabilize Your Portfolio and To Help Double Your Net Worth!!

Cabal Capital Management, LLC announces the launch of the Special Opportunity Fund which provides alternative investment opportunities into extremely low risk, very high financial return Advanced High Income Generation Projects through direct investments.

Our fund is unlike all others that exist today by offering investments that are focused on both strategic and tactical investment opportunities into Highly Advanced Income Generating Project(s) producing vital, very high demand product(s) that are being sold directly into the largest “Major” Universal Demand Markets in the world.  These investments allow risk adverse accredited investors the ability to participate in the revenues generated from these projects which allows for and achieves capital growth while providing the investor a low risk opportunity with the benefit of dependable and sustainable alpha generation and the long term growth from these projects.  These fully integrated projects have been designed to last 40 to 50 years or longer for their life cycles regardless of the global financial and credit markets.

Our fund is well positioned to effectively tap into these markets to the benefits of our investors.  The growth dynamics of the United States and Western Europe is based upon local, regional and domestic consumption of all the products these projects produce.  This fund is targeting routine and consistent annual double digit returns (15 – 21%) to investors un-correlated to all securities, commodities, currencies and the credit markets themselves since there will not be any exposure to these markets.  All project investments within this special investment vehicle have been specifically developed and designed to perform across various business cycles regardless of global economic conditions.

The current global credit crisis, current stock market contractions and wild swings in the commodities markets does not and will not impact our ability to produce consistent annual double digit returns now or in the future for our investors since we will never have, need or rely on the credit markets to establish margin accounts or leveraged positions which most all hedge fund type investment vehicles require to operate.  We do not require nor will we ever utilize prime services which the large investment banks provide (Bear Stearns, Lehman Brothers, Merrill Lynch, etc.). We do not rely on the stock, commodity or currency exchanges to generate income since we can not control any of the events occurring in those exchanges for our investors, thus we are totally un-correlated to all securities, commodities, currencies and credit markets. 

In the case of Deflationary and or Inflationary Markets, they will have no real effect on these projects and the products they produce.  Coincidentally inflation will only increase the value of the products coming out of the projects, and deflationary markets will have very minimal impact as well since the products produced will always be in very high demand through out the world. 

Risk issues are always addressed through risk management and the review procedures for each and every investment made.  Unlike most projects which have been developed, planned and master planned, every assumption for each project has been tested, validated, verified and proven or it’s not incorporated into these project(s).  Each and every project is also backed up by a detailed Input / Output Financial Cash Model which is a detailed Program / Project Financial Blueprint that shows the quarterly inter-relationships of investments, operational production revenues, operational expenses at all levels, taxes, imposts and fees, special circumstances events, and financial obligations during the life of the Program / Project.

Since energy production and consumption is the key element to any industrialized country, and with energy consumption increasing globally at an annual rate of 5 – 6 %, energy is and always will be vital to both the U.S. and Western European Economies. Allocating to Energy and Bio-Fuels production are two major key areas of involvement and investments within our seven pronged program investment strategies approach, which consists of the following options available to us:  Energy:  Oil & Gas (Example Project to follow), Bio Fuels:  Algae Based Bio-Diesel and Jatropha Curcas {plant} direct fuel source.  Algae Based Bio-Diesel is a direct fuel source currently available and ready for full scale production and delivery {This is not a blend for gasoline!} Algae Based Bio-Diesel Fuel production utilizes proprietary photo enhanced, micro nutrient enhanced, continuous flow, automated, sensor quality controlled, bio-chemical industrial processes and then are pressed, centrifuged, oils separated from water, water treated, cooked, cracked and treated all within a 12 hour cycle (Start to Finish) to complete one batch made ready for use in any diesel engine.  Initially 270 Million Gallons per quarter to several Billion Gallons of bio-diesel per quarter will be produced depending upon the initial size of a project program.  This Algae Based Bio-Diesel Fuel source has a Cetane Rating of 105 -117 compared to 80 – 85 Cetane Rating for #1 diesel fuel currently produced by all the major oil companies, which provides more power, better millage and performance while emitting 60 – 70% less emissions across the board vs. normal standard crude oil based diesel fuels. Algae Based Bio-Diesel emits no sulfur and or nitrogen into the atmosphere, Alternative Energy:  Solar / Concentrated Solar Thermal Power Production, Wind and Electric Fuel Cell Systems, Natural Resources:  Gold, Platinum, Other Precious Metals Groups and Diamond Mining: Refining, Assaying, Separation using advanced physical technologies and Bullion production of Gold and Platinum as well as Processing, Cutting, Valuation Appraisals of Diamonds and other Precious Stones, Water:  Proprietary Water Science / Technology to Produce Fresh Drinking Water to meet Agricultural, Industrial and Human Public Health needs in critically water short areas through Water production, bottling facilities and distribution.  This can be accomplished with any available water supply {in ground water tables, above and below ground reservoirs with a high saline content normally not recommended for human consumption}, Sea Waters & Brackish Waters anywhere Globally, Hydroponics:  Food Production: Fish Shrimp, Prawns, Fruits Vegetables utilizing USDA inspectors to garner Grade A Choice Status to include direct marketing into Major U.S.A. and International Consumer Demand Markets, and Special Opportunities: Aviation Fuels: JP-1 to JP-12 for Commercial and Military Applications from Algae Based Direct Fuel Sources as well as Advanced Hyper-Speed Information Technologies and other Advanced High Income Generation Project Opportunities as they become available.

It should be noted that traditional large project investments consist normally of only one income generation production element and typically requires three years at the earliest before the investors see any type of modest return on their investment.  Our projects produce immediate results in the first year.  These Exclusive World Class Projects which are available to us for investments have no less than 2, but normally include 5 or more Major Integrated Income Production Elements within each pro
ject.  It should also be noted that each income producing element within these projects are so strong that they could stand on their own and support the entire project, which is why many of these elements are developed together to form an Advanced Integrated Income Generation Project depending upon the requirements and location of the program.

All of the projects that this special opportunity fund invests in involve Proprietary Advanced Technologies and Advanced Physical Science / Processes (not known to the great majority of Asset Manager Companies Staffs).   Other types of investment pool managers, hedge funds, etc. do not know or even have access to these world class development engineering people and the technologies assets and projects that they develop, implement and manage.  Currently we have in excess of $10 Billion Dollars worth of Advanced High Income Generation Projects available to us for investments.

Another Special Note of consideration is that each investment will bring with it potential tax advantages not typically found in other types of investments.  Depending on where the project(s) are located and how the project are legally structured and set up (Development Corporations, Development Authority, etc.) could result in tremendous tax advantages, which each investors tax advisor will need to qualify and determine the best approach for each investors own tax liabilities depending upon their current tax status, situation and strategies.

These projects are conducted by Highly Reliable, Senior Internationally Experienced Technical Managers, Senior Science Managers and Senior Logistics / Project Security Management Staffs, which have planned, developed, evaluated and trouble-shot economic development projects and strong income generation projects in over 65 countries during the past 40 years.

There are in excess of 300 Top Level Executive Technical Managers with over 30 years of Experience in each of their perspective Development Sectors available for all projects that our fund invests in.  These projects are designed to insure extreme depth of expertise and experience management which is available to any project at any and every stage of the project program, regardless of location of the project anywhere globally.

** Fully Integrated Oil & Gas / Real Example Project:

This Oil & Gas production program is headed up by a Top Level Senior International Consultant which is an Oil and Gas Industry Executive who has been involved in the Oil & Gas Industry over the past 50 years.  This Oil & Gas Executive is the Systems Developer, Scientist, Equipment Designer and Engineer who is recognized as an expert in his field by the U.S. Department of Energy who also has called him upon him frequently in the past to trouble shoot particular Oil and Gas fields as a technical advisor and as a trouble shooter to rectify any and all problems associated with troubled oil and gas production fields.

This Top Senior International Consultant has a proprietary and proven 12 step methodology for siting, drilling, completing and production techniques for all wells.  He has a historical commercial success rate of 92% for bringing in all of his wells sited, drilled, completed and producing which also has a normal life span of 15 to 20 plus year’s worth of production.

This Advanced High Income Generation Oil and Gas project is comprised of the following: 

A Top Down Electric Air Hammer System which is highly sensorized with Professional Engineers and Scientists managing all operational positions.  These auto sensor rigs provide detailed information by satellite to a centralized operations and training center where all decisions are made by people with 45 – 50 years of successful completion and production experience.

Each oil and gas well completed will be drilled in both soft and hard rock beds and will vary in depths from 3,000 feet to over 13,000 feet.  All wells in this program will be completed initially in the state of Texas, in the United States of America.

Typical production wells will produce 60 barrels of oil per day to 500 – 600 barrels of oil per day and the gas wells will produce in a typical range of 2 million cubic feet of natural gas per day to in excess of 20 million cubic feet of natural gas per day. The total net operating investment will be returned within 4 months of production for each well.

Multiple producing formations will be completed and isolated with proprietary tools and instruments which will be operated simultaneously through out the life of the wells.  The typical life of these well are 15 – 20 years because of the 12 different proprietary methods used for siting, drilling, completion and production techniques, tools, proprietary materials and instruments used on each and every well which prevents formation damage and increases the life cycle of each well to maximize the highest production obtainable.

This program consists of hundreds of oil and gas wells sited, drilled, completed and in production within a 1 – 2 year period.  These wells will be sited, drilled and completed in historically very well known and documented oil and gas producing formations within the state of Texas, in the United States of America.

Investors will receive an estimated 15 – 21% annual return per year on their investment, with payments coming at the end of each year from this program.  The threshold investment will be an aggregate amount of $400 hundred million dollars which is what the minimum program investment calls for.

Estimated program revenues are based on $60 dollars a barrel and $6.5 dollars per thousand cubic foot of natural gas.  Over the last year crude oil (West Texas Intermediate) has sold as low as $50 dollars a barrel up to as much as $147 dollars a barrel.  Over the past year natural gas has sold from $5.5 dollars a thousand cubic foot to $11.3 dollars per thousand cubic foot.

Example Oil & Gas Well Profile:  One well; properly sited, drilled, completed and producing will conservatively produce 100 barrels of oil per day and 4 million cubic foot of natural gas per day.  This provides the overall program (100 barrels x $60 per barrel = $6,000) $6,000 dollars per day of revenue.  Each 4,000 cubic foot of natural gas (4,000 x $6.5 per thousand cubic foot = $26,000) $26,000 dollars per day of revenue.  Total revenue for this example is estimated at $32,000 dollars per day of program revenue for this example. 

** All wells in this program will not produce the same **

Each month this represents a program return of (30 days x $32,000 = $960,000) $960,000 dollars of revenue coming from this one (1) example well.  The investment program we are offering involve several hundreds of program wells being sited, drilled, completed and operating within a 1 to 2 year period.

Remember, this is only two elements of a fully integrated Advanced High Income Generation Project which will involve in most cases several other elements to generate very substantial amounts of revenues over the course of the project life.  With the combination of several other Advanced High Income Generation Elements within one project, this will enhance the financial returns and revenues of the program itself, and thus will also greatly reduce any associated risk due to the diversification of the different Major Income Generation elements within each project.

Once again, the result of this Special Investment Vehicle fund are highly advantageous investment opportunities that by far exceed the majority of investment opportunities from a financial return and an extremely low risk standpoint by investing in Outstanding Advanced High Income Generation Projects.

Headquartered in San Antonio, Texas, Cabal Capital Management, L.L.C. is managed by Kent Sullivan: www.cabalcapitalmanagement.com

INTRODUCTION

One of the outstanding features of globalization in the financial services industry is the increased access provided to non-local investors in several major stock markets of the world. Increasingly, stock markets from emerging markets permit institutional investors to trade in their domestic markets. Indian stock market opened to Foreign Institutional Investors in 14th September 1992, initially with lot of restrictions. The regulation on them are liberalized and minimized now, since 1993 has received a considerable amount of portfolio investment from foreigners in the form if FIIs investment in equities. This has become a turning point of India stock market. The government of India announced the policy of the government to permit the FII investment in India capital market. According to the SEBI modified the regulation on 14-11-1995. In order to make investment in India equity market they wanted to register with Security Exchange Board of India as foreign institutional investors. It is possible for foreigners to trade in India securities without registering as Foreign Institutional investors, but such cases require approval from Reserve Bank of India or the Foreign Institutional Promotion Board. They are generally concentrated in secondary market.

Domestic market alone not able to meet the growing capital requirement of the country and financing from mutilated institution has lost primary in the emerging in the global order .Besides aimed primarily at ensuring non-debt creating capital inflows at a time of extreme balance of payment crisis. It was to tie over the balance of payment crisis in the early 1990s

Portfolio flows often referred to as ‘hot- money’ are notoriously volatile capital flows. They have also responsible for spreading financial crisis causing contagion in international market. Evan though, the FIIs have been plying a key role in the financial markets since their entry into this country. The explosive portfolio flow by FII brings with them great advantages as they are engine of growth, lowering cost of capital in many emerging market. This opening up of capital markets in emerging market countries has been perceived as beneficial by some researchers while others are concerned about possible adverse consequences.

Clark and Berko (1997) emphasize the beneficial effects of allowing foreigners to trade in stock markets and outline the “base-broadening” hypothesis. The perceived advantages of base-broadening arise from an increase in the investor base and the consequent reduction in risk premium due to risk sharing. Other researchers and policy makers are more concerned about the attendant risks associated with the trading activities of foreign investors. They are particularly concerned about the herding behavior of foreign institutions and the potential destabilization of emerging stock markets.

This study addresses these issues in the context of foreign institutional investors’ (FII) trading activities in a big emerging market – India. India liberalized its financial markets and allowed FIIs to participate in their domestic markets in 1992. Ostensibly, this opening up resulted in a number of positive effects. First, the stock exchanges were forced to improve the quality of their trading and settlement procedures in accordance with the best practices of the world. Second, the information environment in India improved with the advent of major international financial institutional investors in India. On the negative side we need to consider potential destabilization as a result of the trading activity of foreign institutional investors. This is especially important in an emerging country that has embarked upon reforms to open up its market.

OBJECTIVES The objectives of this study were as follows;

(1) To study the role of FII investment in the Indian stock market, ( 2 ) To examine the causal relationship between net FII investment and BSE sensex using granger causality test (3) To examine the causal relationship between net FII investment and NSE sensex using granger causality test (4 )To examine whether FIIs were a channel of global disturbance into the Indian stock market.

TOOLS: Study was carried out with the help of unit root test, co integration test, causal regression and F statistics for FII investment and index from BSE and NSE

LETERATURE REVIEWS

Gayathri Devi .R in 2003, she conducted study on “Causal Relationship between FIIs and Stock Market: A critical study”. It revealed that there was long run relationship between net FII investment and sensex, FII investment did not respond the short-run changes or technical-position of the market and they were more driven by fundamentals, and FII investments did granger cause India stock market. “Selen Serisoy Guerin” in 2006, conducted study on “The Role of Geography in Financial and Economic Integration: A comparative Analysis of foreign direct investment, Trade and Portfolio Investment Flows”.. It found support for the argument that most FDI among Industrial countries were horizontal, whereas most FDI investment in developing countries was vertical and our results indicated that portfolio investment flows compared to FDI, were highly sensitive to change in GDP per capita, this implied that if there was a negative output stock, portfolio investment flows would be more volatile than FDI. A.Julia Priya, D. Lazar and Joseph Jeyapual in 2005, they conducted study on “Role of Foreign Institutional Investors on stock market development in India”, Results revealed that sensex, market capitalization of NSE, Turnover of BSE and NIFTY without market capitalizations were influenced by Foreign Institutional Investors“Suchismita Bose and Dipankor coondoo” in 2004, they conducted study on “The Impact of FII Regulation in India”,. These results strongly suggested The liberalization policies had the desired expansionary effect and had either increased the mean level of FII inflows and/or the sensitivity of these flows to a change in BSE returns and /or the Parthapratim pal in 2004 conducted study entitled as “Recent volatility in stock markets in India and foreign institutional investors. Findings of this study indicated that Foreign institutional investors had emerged as the most dominant investor group in the domestic stock market in India. Particularly, in the companies that constitute the Bombay stock market sensitivity index, their level of control was very highinertia of these flows.

“sandhya Ananthanaryanan, Chandrasekhar krishnamurthi and Nilajan Sen in 2003 conducted study as “Foreign institutional Investors and Security Returns: Evidence from Indian Stock Exchanges”, It found strong evidence consistent with the base-broadening hypothesis.It did not find compelling confirmation regarding momentum or contrarian strategies being employed by FIIs.It supported price pressure hypothesis.

It did not find any substantiation to the claim that foreigner’ destabilize the market. J.S. Pasricha and Umesh.C.Singh in 2001, tried to analyze the impact of FIIs investment on Indian capital market. Their study revealed that FII are here to stay and have become the integral part of Indian capital market. Their entry has led to greater institutionalization of the market. They have brought transparency in the market operations.S.S.S. Kumar in 2001, attempted in his study to find the effect of FIIs on the Indian stock market. The inference analysis of the paper suggests that FII investments are more driven by market fundamentals rather than by short term changers or technical position of the market. As per K. Seethapathi and V. Subbulakshmi study entitled “Foreign investment: Need for focus”, They concluded that, the flows have to pick up. The political will is to be demonstrated by the government. In addit
ion, the regulators have to identify the reasons for failure in converting approvals into actual investments and those issues are to be addressed immediately. E. Han Kim and Vijay Singal in 1997, they conducted study entitled “Are open market Good for Foreign Investors and Emerging Nations?”, Conclusion revealed as. Integrating the emerging stock markets into world markets has had benefits, and will continue to have benefits for both global investor and host countries. The end result of integrated markets a better allocation of resources, improved productivity of capital, and a higher standard of living.

THEORETICAL REVIEW

Between late 1990 and the middle of 1991, the economy faced severe balance of payment difficulties, coming close to defaulting on its external payment obligations in January and June of 1991. In January 1991, the Government negotiated with the International Monetary Fund (IMF) for loans. What followed was the implementation of the conventional IMF-World Bank prescription of short-term ‘stabilization’, consisting of devaluation, temporary import compression, fiscal and monetary compression with a rise in interest rates, followed by more long-term ‘structural adjustment’ measures, seeking to restructure the domestic economy.

The New Economic Policy was an outcome of implementation of the ‘structural adjustment’ program. The ‘economic reforms’ or ‘economic liberalization’ program, which began to be implemented with the announcement of the New Economic Policy (NEP), included wide-ranging changes in industrial policy, trade policy and foreign investment policy, a redefinition of the role of the public sector in the economy and redesigning the architecture of the domestic financial system. By narrowing down the topic, first it concentrates on capital account liberalization.

CAPITAL ACCOUNT LIBERALIZATION

The process of capital account liberalization in India needs to be situated in its wider context, for it was shaped by the reality in the national context and the conjuncture in the international context. In response to the external debt crisis, which surfaced in 1991, the government set in motion a process of stabilization, adjustment and reform. Economic liberalization and structural reforms sought to increase the degree of openness of the economy through trade flows, investment flows, technology flows and capital flows. The process began the introduction of convertibility on trade as quantitative restrictions on imports, except for with consumer goods were dismantled and tariff levels were reduced. It was combined with a liberalization of the regimes for foreign investment and foreign technology. And restrictions on international economic transactions, including capital movements, were progressively reduced. This process was also influenced by the gathering momentum of globalization which was associated with increasing economic openness in trade flows, investment flows and financial flows.

The approach to capital account liberalization in India was much more cautious. What was liberalized was specified. Everything else remained restricted or prohibited. The contours of liberalization of the capital account were, in large part, shaped by the salutary lessons of the external debt crisis which surfaced in early 1991 and brought India close to default in meetings its international obligations. The balance of payments situation, then, was almost unmanageable.

The vulnerability was accentuated by two factors: it became exceedingly difficult to roll-over short-term debt in international capital markets and there was capital flight in the form of withdrawals from deposits held by non-resident Indians. This experience dictated the parameters of capital account liberalization8. It prompted strict regulation of external commercial borrowing especially short-term debt. It led to a systematic effort to discourage volatile capital flows associated with repatriable non-resident deposits. Most important, perhaps, it was responsible for the change in emphasis and the shift in preference from debt creating capital flows to non-debt creating capital flows. To some extent, the liberalization that was introduced was also influenced by the perceived needs of the economy: financing the current account deficit, mobilizing resources for investment and attracting international firms. But capital account convertibility remained, fortunately, in the realm of rhetoric. The Mexican crisis in late 1994 was, ironically enough, a blessing in disguise for India. It was not just an early warning signal. It dampened the enthusiasm of those who advocated capital account liberalization with a big bang. It lent support to those who questioned the wisdom of capital account convertibility that would have been premature in every sense. The contours of capital account liberalization in India were determined by these factors.

In sketching these contours, it is necessary to distinguish between different forms of private capital inflows and outflows, as there are important differences between these categories in the nature and the degree of liberalization. A complete description would mean too much of a digression. For our purpose, it would suffice to consider the contours of liberalization in the following categories of capital account transactions:

• Direct investment,

• Portfolio investment, and

• Non-resident deposits.

Foreign Direct Investment

It is defined as a long-term investment by a foreign direct investor in an enterprise resident in an economy other than that in which the foreign direct investor is based. The FDI relationship consists of a parent enterprise and a foreign affiliate which together form a transnational corporation (TNC). In order to qualify as FDI the investment must afford the parent enterprise control over its foreign affiliate.

The liberalization of the policy regime for direct foreign investment began in July 1991 with two major decisions. First, direct foreign investment with up to 51 per cent equity was to receive automatic approval in selected high priority industries subject only to a registration procedure with the Reserve Bank of India. Second, a Foreign Investment Promotion Board was constituted to consider all other proposals for direct foreign investment where approval was not constrained by pre-determined parameters and procedures. In effect, this created a dual route for inflows of direct foreign investment. The approval was automatic, within the specific parameters, from the Reserve Bank of India, while all other inflows were subject to approval through the Foreign Investment Promotion Board. The access through the automatic route has been progressively enlarged over time. Needless to add, outflows associated with direct foreign investment are not subject to any restrictions, but this was so even in the era of capital controls.

Foreign Portfolio Investment (FPI)

Portfolio investment represents passive holdings of securities such as foreign stocks, bonds, or other financial assets, none of which entails active management or control of the securities’ issuer by the investor; where such control exists, it is known as foreign direct investment.

The liberalization of the policy regime was extended to portfolio investment in September1992. To begin with, foreign institutional investors such as pension funds or mutual funds were allowed to invest in the domestic capital market subject simply to registration with the Securities and Exchange Board of India. Guidelines issued by the Reserve Bank of India permitted such foreign institutional investors to invest in the secondary market for equity subject to a ceiling of 5per cent (subsequently raised to 10 per cent) for individual foreign institutional investors in a single Indian firm with an overall limit at 24 per cent of equity (later relaxed to 30 per cent of equity at the option of the firm) for total foreign institutional investment in a single Indian firm. Foreign portfolio investment further class
ified into

1. FIIs

2. ADR/GDR, and

3. Offshore funds.

Foreign institutional investors (FIIs)

One who propose to invest their proprietary funds or on behalf of “broad based” funds or of foreign corporates and individuals and belong to any of the under given categories can be registered for FII.

• Pension Funds

• Mutual Funds

• Investment Trust

• Insurance or reinsurance companies

• Endowment Funds

• University Funds

• Foundations or Charitable Trusts or Charitable Societies who propose to invest on their own behalf, and

• Asset Management Companies

• Nominee Companies

• Institutional Portfolio Managers

• Trustees

• Power of Attorney Holders

• Bank

Access was provided to foreign institutional investors in the secondary market for debt. Soon thereafter, foreign institutional investors were also allowed investment or placement in the primary market, subject to approval from the Reserve Bank of India, with a maximum limit of 15per cent of the new issue. It was some time before foreign institutional investors were permitted investment in government securities in the primary and secondary markets. This came in 1996-97 and was subject to the ceiling for external commercial borrowing. Subsequently, in 1998-99, foreign institutional investors were also permitted to invest in treasury-bills. There is no reserve requirements stipulated for, or taxes imposed on, these capital inflows. It also needs to be said that foreign institutional investors are allowed to repatriate the principal, the capital gains, the dividends, the interest and any other receipt from the sale of such financial assets, without any restriction, at the market exchange rate. The income tax rate for dividends on such portfolio investment for foreign institutional investors is 20 per cent, which is much lower than the corporate income tax rate for domestic or foreign firms. But foreign institutional investors are subject to a higher short-term capital gains tax at 30 per cent compared with 20 per cent for domestic investors, while the long-term capital gains tax is the same at 10 per cent. Sales of such financial assets for the purpose of repatriation are absolutely unrestricted, provided the sales are through stock exchanges. However, disinvestment through any other route, or in any other form, requires approval from the Reserve Bank of India.

Global Depositary Receipt:

Global Depositary Receipt A negotiable certificate held in the bank of one country representing a specific number of shares of a stock traded on an exchange of another country. American Depositary Receipts make it easier for individuals to invest in foreign companies, due to the widespread availability of price information, lower transaction costs, and timely dividend distributions. Also called European Depositary Receipt.

The option of portfolio investment was also made available to domestic corporate entities from September 1992. Indian firms were allowed access to international capital markets through global depository receipts or Euro convertible bonds which converted debt into equity after stipulated period. This access, however, was not automatic. Individual applications, drawn up inconformity with the general guidelines of the government, were subject to approval. This process remains unchanged.

Offshore Funds:

An offshore fund is a collective investment scheme domiciled in an Offshore Financial Centre, for example British Virgin Islands, Luxembourg, Cayman Islands or Dublin.

Similar facilities for portfolio investment were subsequently extended to Offshore funds, non-resident Indians (as individuals) and overseas corporate bodies, only for investment in shares or debentures through stock exchanges, on the same terms as foreign institutional investors, but subject to a ceiling of 5 per cent for individual non-resident Indians or overseas corporate bodies in a single Indian firm.

Among the various components of portfolio investment, FII comprises the bulk of portfolio inflows. The main objective of foreign institutional investors is to minimize risk and maximize returns by diversifying their portfolios internationally. Major determinants of investment decisions of FII are country and region specific.

Portfolio flows often referred to as ‘hot- money’ are notoriously volatile capital flows. They have also responsible for spreading financial crisis causing contagion in international market. Evan though, the FIIs have been plying a key role in the financial markets since their entry into this country. The explosive portfolio flow by FII brings with them great advantages as they are engine of growth, lowering cost of capital in many emerging market. This opening up of capital markets in emerging market countries has been perceived as beneficial by some while others are concerned about possible adverse consequences.

Among the most active FIIs are Morgan Stanely Asset Management, jardine Fleming, Capital International, J. Henery schorder, templeton, Warburg Pinkers, Internatioanl Alliance and Quantum fund.

Foreign Institutional Investors in India

India opened her doors to foreign institutional investors in September, 1992. This event represents a landmark event since it resulted in effectively globalizing its financial services industry. Initially, pension funds, mutual finds, investment trusts, Asset Management Companies, nominee companies and incorporated/institutional portfolio managers were permitted to invest directly in the Indian stock markets. Beginning 1996-97, the group was expanded to include registered university funds, endowment, foundations, charitable trusts and charitable. Since then, FII flows which form a part of foreign portfolio investments have been steadily growing in importance in India. Other than in the year 1998, the net flows have been positive. The nuclear tests and East Asian crisis did slow down the flows but as stated by Gordan and Gupta (2003), their effects were short lived. That the percentage of total net turnover of BSE, the share of average of FII sales and purchases increased from 2.6 percent in 1998 to 5.5 percent in 2002. The cumulative net FII investment in India as on August 2003 is approximately $17400 million. As of August 2003 net FII investment was 9 percent of the BSE market capitalization which is small compared to the size of the market. However, in the words of Banaji (2002), it is not the market capitalization that matters but what is important is the level of the free float, that is, the shares that are actually publicly available for trading. With floating stock in the Indian market being less than 25 percent, about 35 percent of the free float available has been bagged by FIIs – despite the fact that they invest in just a few highly liquid stocks.

Though India receives hardly 1 percent of the FII investments in emerging markets, the portfolio flows to India have been less volatile when compared with that of many other emerging markets (Gordan and Gupta, 2003). FIIs by adopting a bottom-up approach seem to invest in top-quality, high growth, large cap stocks (Gordan and Gupta, 2003). Sytse et al. (2003) provide empirical evidence that foreign institutional investors in India, invest in large, liquid companies which enable them to exit their positions quickly at relatively lower cost and also that the foreign institutional owners have a larger impact than foreign corporate owners when performance is measured using stock market valuation criterion.

India is one of the fastest growing economies in South Asia, promising a growth of over 9 percent, second only to China, it would not be a surprise to see increased FII flows to India in the future. FIIs are now looking at the economy as a whole, with the macro-economic factors also playing their role in attracting foreign investors. Factors like a strong currency, key reforms in the banking, power and telecomm
unications sector, increased consumer spending and stable policies are expected to play a major role in attracting FIIs to India. The Securities Exchange Board of India (SEBI) along with the Institute of Chartered Accountants of India (ICAI) jointly monitor the markets and announces the regulatory measures thus making the Indian companies more transparent and more disciplined.

According to the April 2005 report on corporate governance by CLSA Emerging Markets, India ranks fourth with a score of 55.6 percent. Banaji (2000) emphasizes that the capital market reforms like improved market transparency, automation, dematerialization and regulations on reporting and disclosure standards were initiated because of the presence of the FIIs. But FII flows can be considered both as the cause and the effect of capital market reforms. The market reforms were initiated because of the presence of FIIs and this in turn has lead to increased flows.

The Government of India gave preferential treatment to FIIs till 1999-2000 by subjecting their long term capital gains to lower tax rate of 10 percent while the domestic investors had to pay higher long-term capital gains tax. The Indo-Mauritius Double Taxation Avoidance Convention 2000 (DTAC), exempts Mauritius-based entities from paying capital gains tax in India – including tax on income arising from the sale of shares. This gives an incentive for foreign investors to invest in Indian markets taking the Mauritius route. Consequently, we now see investments coming from Mauritius while there were none before 2000.

The country wise distribution of the FIIs registered in India, with majority of them coming from USA and UK. Chakrabarti (2002) and Rao et al. (1999) point out the fact that due to existing inter-linkages, the source of the FII investment might not be the country from where the institution operates. Nevertheless, the figure gives us an idea of the country wise distribution of the FIIs in India. So as to encourage long term investments in the Indian market, Budget 2003 proposed that investors who buy stocks of listed companies from March 1, 2003 be exempt from paying tax on the gains they make on their investments, provided they hold them for more than one year. With so much to benefit from, the FII investment in India is likely to increase in the future.

Regulation on FII

Investment by FII was jointly regulated by Securities and Exchange Board of India (SEBI) through the SEBI (Foreign Institutional Investors) Regulations, 1995 and by the Reserve Bank of India through Regulation 5(2) of the Foreign Exchange Management Act (FEMA), 1999. The promulgation of legislation pertaining to foreign investment by SEBI in 1995 market a watershed for FII flows to India; this led to a significant increase in the level of FII equity inflows in the pre-Asian crisis period. The SEBI FII Regulations and RBI policies are amended and modified from time to time in response to the gradual maturing of the Indian financial market and changes taking place in the global economic scenario.

In order to trade in India equity market, foreign corporation need to register with SEBI as Foreign Institutional Investors. Without registration they can invest, but cases require the approval from RBI. They are generally concentrated in secondary market. FII are allowed to invest in

a) Securities in primary and secondary market including shares, debentures and warrant of companies, unlisted, listed or to be the listed in India.

b) Units of mutual funds

c) Dated government securities

d) Derivative traded in a recognized stock market and

e) Commercial papers

FII can invest their own funds as well as invest on behalf of their over seas clients registered as such with SEBI. These client accounts that the FII manages are known as ’sub accounts’. FII sub accounts include those foreign corporate, foreign individual, institution funds or portfolio established or incorporated out side India.

FII may issue deal in or hold off share derivative instrument such as participatory notes (PN). The entities that can subscribe to the PN are : a) Any entity incorporated in a jurisdiction that requires filing of constitutional or other documents with a registrar of companies or comparable regulatory agency or body under the applicable companies legislation in that jurisdiction; b) Any entity that is regulated, authorized or supervised by a central bank, such as the Bank of England, or any other similar body provided that the entity must not only be authorized but also be regulated by the aforesaid regulatory bodies; c) Any entity that is regulated, authorized or supervised by a securities or futures commission, such as the Financial Services Authority or other securities or futures authority or commission in any country , state or territory ; d) Any entity that is a member of securities or futures exchanges such as the New York Stock Exchange or other self-regulatory securities or futures authority or commission within any country, state or territory provided that the aforesaid mentioned organizations which are in the nature of self- regulatory organizations are ultimately accountable to the respective securities financial market regulators.

Investment limit

As per the September 1992 policy permitted foreign institutional investment registered FII could individually invest in a maximum of 5% of a company’s issued capital and all FIIs together up to a maximum of 24%. From November 1996 are allowed to make 10 percentage investment in debt securities subject to the specific approval from SEBI as a separate category of FIIs or sub accounts as 100% debt fund investment such investment were of occurs subjected to the fund specific ceiling prescribed by SEBI and had to be within overall ceiling US 1.5 $. The investment was however, restricted to the debt instrument of companies listed or to be listed on the stock exchanges. In 1997, the aggregate limit on investment by FIIs was allowed to be raised from 24% to 30% by then board of directors of individual companies by passing a resolution in their meeting and by special resolution to that effect in the company’s Board meeting. In June 1998 the 5% individual limit was raised to 10%.In March 2000, the ceiling on aggregate FII portfolio investment increased to 49%.This was subsequently raised to 49%, on March 8 2001, Finance minister announced February 28 2002 that foreign institutional investors can invest in accompany under the portfolio investment rout beyond 24% of the paid up capital of the company with the approval of the general body of the share holders by a special resolution.

Benefits and costs of FII investments

The terms of reference asking the Expert Group to consider how FII inflows can be

encouraged and examine the adequacy of the existing regulatory framework to adequately address the concern for reducing vulnerability to the flow of speculative capital do not include an examination of the desirability of encouraging FII inflows. Yet, for motivating the consideration of the policy options, it is useful to briefly summarize the benefits and costs for India of having FII investment. Given the Group’s mandate of encouraging FII flows, the available arguments that mitigate the costs have also been included under the relevant points.

Benefits

Reduced cost of equity capital

FII inflows augment the sources of funds in the Indian capital markets. In a commonsense way, the impact of FIIs upon the cost of equity capital may be visualized by asking what stock prices would be if there were no FIIs operating in India. FII investment reduces the required rate of return for equity, enhances stock prices, and fosters investment by Indian firms in the country.

Imparting stability to India’s Balance of Payments

For promoting growth in a developing country such as India, there is need to augment domestic investment, over and beyond domestic saving, through capital flows. The excess of domestic investment over dom
estic savings result in a current account deficit and this deficit is financed by capital flows in the balance of payments. Prior to 1991, debt flows and official development assistance dominated these capital flows. This mechanism of funding the current account deficit is widely believed to have played a role in the emergence of balance of payments difficulties in 1981 and 1991. Portfolio flows in the equity markets, and FDI, as opposed to debt-creating flows, are important as safer and more sustainable mechanisms for funding the current account deficit.

Knowledge flows

The activities of international institutional investors help strengthen Indian finance. FIIs advocate modern ideas in market design, promote innovation, development of sophisticated products such as financial derivatives, enhance competition in financial intermediation, and lead to spillovers of human capital by exposing Indian participants to modern financial techniques, and international best practices and systems.

Strengthening corporate governance

Domestic institutional and individual investors, used as they are to the ongoing practices of Indian corporates, often accept such practices, even when these do not measure up to the international benchmarks of best practices. FIIs, with their vast experience with modern corporate governance practices, are less tolerant of malpractice by corporate managers and owners (dominant shareholder). FII participation in domestic capital markets often lead to vigorous advocacy of sound corporate governance practices, improved efficiency and better shareholder value.

Improvements to market efficiency

A significant presence of FIIs in India can improve market efficiency through two channels. First, when adverse macroeconomic news, such as a bad monsoon, unsettles many domestic investors, it may be easier for a globally diversified portfolio manager to be more dispassionate about India’s prospects, and engage in stabilsing trades. Second, at the level of individual stocks and industries, FIIs may act as a channel through which knowledge and ideas about valuation of a firm or an industry can more rapidly propagate into India. For example, foreign investors were rapidly able to assess the potential of firms like Infosys, which are primarily export-oriented, applying valuation principles that prevailed outside India for software services companies.

Costs

Herding and positive feedback trading

There are concerns that foreign investors are chronically ill-informed about India, and this lack of sound information may generate herding (a large number of FIIs buying or selling together) and positive feedback trading (buying after positive returns, selling after negative returns). These kinds of behavior can exacerbate volatility, and push prices away from fair values. FIIs’ behavior in India, however, so far does not exhibit these patterns. Generally, contrary to ‘herding’, FIIs are seen to be involved in very large buying and selling at the same time. Gordon and Gupta (2003) find evidence against positive-feedback trading with FIIs buying after negative returns and vice versa.

BoP vulnerability

There are concerns that in an extreme event, there can be a massive flight of foreign capital out of India, triggering difficulties in the balance of payments front. India’s experience with FIIs so far, however, suggests that across episodes like the Pokhran blasts, or the 2001stock market scandal, no capital flight has taken place. A billion or more of US dollars of portfolio capital has never left India within the period of one month. When juxtaposed with India’s enormous current account and capital account flows, this suggests that there is little evidence of vulnerability so far.

Possibility of taking over companies

While FIIs are normally seen as pure portfolio investors, without interest in control, portfolio investors can occasionally behave like FDI investors, and seek control of companies that they have a substantial shareholding in. Such outcomes, however, may not be inconsistent with India’s quest for greater FDI. Furthermore, SEBI’s takeover code is in place, and has functioned fairly well, ensuring that all investors benefit equally in the event of a takeover.

Complexities of monetary management

A policymaker trying to design the ideal financial system has three objectives. The policy maker wants continuing national sovereignty in the pursuit of interest rate, inflation and exchange rate objectives; financial markets that are regulated, supervised and cushioned; and the benefits of global capital markets. Unfortunately, these three goals are incompatible. They form the “impossible trinity.” India’s openness to portfolio flows and FDI has effectively made the country’s capital account convertible for foreign institutions and investors. The problems of monetary management in general, and maintaining a tight exchange rate regime, reasonable interest rates and moderate inflation at the same time in particular, have come to the fore in recent times. The problem showed up in terms of very large foreign exchange reserve inflows requiring considerable sterilization operations by the RBI to maintain stable macroeconomic conditions. The Government had to introduce a Market Stabilization Scheme (MSS) from April1, 2004.

With the foreign exchange invested in highly liquid and safe foreign assets with low rates of return, and payment of a higher rate of interest on the treasury bills issued under MSS,

sterilization involves a cost. With a rapid rise in foreign exchange reserves and the need for having an MSS-based sterilization involving costs, questions have been raised about the desirability of encouraging more foreign exchange inflows in general and FII inflows in particular. While there is indeed the issue of timing the policy of encouragement appropriately to avoid the pitfalls of throwing the baby with the bath water, there can not be a turnaround from the avowed policy of gradual liberalization, including the cap ital account. All modern market economies have evolved policies to reconcile prudent monetary management with the benefits of a liberal capital account. There is no scope for any diffidence in India also moving in the same direction.

CONCLUSION

The liberalization policies had the desired expansionary effect and had either increased the mean level of FII inflows and/or the sensitivity of these flows to a change in BSE returns and /or the inertia of these flows. On the other hand, the restrictive measures aimed at achieving greater control over FII flows also did not show any significant negative impact on the net inflows, it had found that these policies mostly render FII investment sensitive to the domestic market returns and raise the inertia of the FII flows.

Foreign institutional investors had emerged as the most dominant investor group in the domestic stock market in India. Particularly, in the companies that constitute the Bombay stock market sensitivity index, their level of control was very high. Data on shareholding pattern showed that the FIIs were currently the most dominant non-promoter shareholder in most of the sensex companies and they also controlled more tradable shares of sensex companies than any other investor groups .The sensex, market capitalization of NSE, Turnover of BSE and NIFTY without market capitalizations were influenced by Foreign Institutional Investors. FIIs investment was not across the shares listed in the stock exchange but instead it was very concentrated on the top few company’s shares. Though there was a role by FII on Indian stock market. It was to be taken very cautiously because their influences were on the very few shares in the stock market, which influenced the indicator included in the study but which might not help the Indian economy to grow

The influence of FIIs on the movement of sensex became apparent after general election in India, during this period sensex experienced its worst single-day
decline in its history and in the three month period between April to June 2004, it declined by about 17 percent. Moreover, this study also showed that even sharp changes in sensex did not necessarily indicted a significant alteration of actual shareholding pattern of different investor groups even in sensex companies. The activities of foreign institutional investors in emerging economies following the opening-up of the capital account were not simply positive for these countries but could also exert adverse effects. The reasons were derived from asymmetric distributions of information between local and foreign investors and between fund holders and mangers. Foreign institutional investors could be assumed to have relatively little information on specific developments in emerging markets so that ‘diluted information’ and ‘illusive competition’ could result. Their influence on these markets was likely to worsen the relative position of local investors which leads to ‘unbalanced diversification’. Moreover, due to their incentives they were likely to amplify occurring imbalances or even trigger financial shocks leading to what they call ‘obscure risks’ and ‘booming contagion’. The was long run relationship between net FII investment and sensex, FII investment did not respond the short-run changes or technical-position of the market and they were more driven by fundamentals, and FII investments did granger cause India stock market. The FIIs investments are highly concentrate in terms of their market value in very small number of companies. There seemed to be a clear distinction in the FIIs shareholding in nifty and non-nifty companies. There was a wide gap between the actual investments by FIIs and the investments allowed as per the cap.The gap in their investments existed both in nifty and non-nifty companies

REFERENCES

1 “Parthapratim pal” in 2006, he conducted study on “Foreign Portfolio Investment, Stock market and Economic Development: A case study of India”,

2 “Selen Serisoy Guerin” in 2006, conducted study on “The Role of Geography in Financial and Economic Integration: A comparative Analysis of foreign direct investment, Trade and Portfolio Investment Flows”

3 Keneeth A. Froot and Tarun Ramadorai in 2005, they conducted study on “The information content of international portfolio flows”,

4 A.Julia Priya, D. Lazar and Joseph Jeyapual in 2005, they conducted study on “Role of Foreign Institutional Investors on stock market development in India”,

5 Keneeth A. Froot and Tarun Ramadorai in 2005, they conducted study on “Currency Returns, Intrinsic value, and Institutional-Investor flows”,

6 Megumi Suto and Masashi Toshino in 2005, they conducted a study entitled as “Behavioral Biases of Japanese Institutional Investors: fund management and corporate governance”

7 “Suchismita Bose and Dipankor coondoo” in 2004, they conducted study on “The Impact of FII Regulation in India”,

8 Lakshmi sharma in 2004, he studied, “A Gap Analysis of FIIs Investment-An estimation of FIIs investment Avenues in Indian Equity Market.

9 Parthapratim pal in 2004 conducted study entitled as “Recent volatility in stock markets in India and foreign institutional investors.

10 “Michael Frenkel and Lukas Menkhoff” in 2004, they conducted study on “Are Foreign Institutional Investor Good for Emerging Markets?”,

11 “Brian Bushee” in 2004, he conducted study on “Identifying and attracting the “right” investors: evidence on the behavior of Institutional investors”,

12 “Christophe faugere and Hany A. Shaby in 2003, they analyzed study on “Volatility and Institutional Investor holdings in a declining market: A study of NASDAQ during the year 2000”.

13 Gayathri Devi .R in 2003, she conducted study on “Causal Relationship between FIIs and Stock Market: A critical study”

14 “sandhya Ananthanaryanan, Chandrasekhar krishnamurthi and Nilajan Sen in 2003 conducted study as “Foreign institutional Investors and Security Returns: Evidence from Indian Stock Exchanges”,

15 Stuart L. Gillan and Laura T. Starks in 2003, they conducted study as “corporate Governance, corporate ownership, and the Role of Institutional Investors: A Global perspective”,

16 “Vihang Errunza” in 2001, he conducted study entitled as “foreign portfolio equity investments, financial liberalization and economic development

17 J.S. Pasricha and Umesh.C.Singh in 2001, tried to analyze the impact of FIIs investment on Indian capital market.

18 S.S.S. Kumar in 2001, attempted in his study to find the effect of FIIs on the Indian stock market.

19 “Rajesh chakrabarti” in 2000 conducted study on “FII Flows to India: Nature and Causes”

20 C.H. Rajeswar in 2000, he conducted study entitled “Foreign Institutional Investors – A new force of support and discipline”

21 As per K. Seethapathi and V. Subbulakshmi study entitled “Foreign investment: Need for focus”,

22 Ila Patnik and Deepa Vasudevan in 1998, their study entitled “foreign portfolio investment to India

23 “Rene M. Stulz” in 1999, he analyzed study on “international portfolio flows and security markets”.

24 Yung Chul Park and Chi-Young Song, they conducted study on “Institutional Investors, Trade linkage, Macroeconomic similarities and contagious Thai crisis

Investing in gold bullion is a great investment strategy. There are many reasons why you would want to invest in this form of investment. Gold as an investment may not get your investment to double, but it certainly is one, which the super wealthy utilize as part of a balanced investment strategy. But, how do you invest in gold bullion?

Gold bars are officially recognized gold in the form of bars that is at least 99.5% pure. The common misconception is that gold can only be in this form. In reality, bullion means a refined and stamped weight of refined precious metal. Traditionally, gold is kept in the form of coins or bars. In olden days, it was in the form of coins; in modern times, it is stored in the form of bars.

But, here is where mistakes can happen in the investment of gold. As investors, we want our investment to be in a position to make returns, but what use is it if when we need access to that investment, we can’t get hard cash for it?

This is a big concern with investing in gold bars. It can seem great to be able to buy a ‘London good delivery’ bar, but if you needed to sell it, could you find a buyer?

It is like selling a suit or your shoes, yes you may be able to get a good price, but how liquid is it? Likely it ends up with less than you expected, and this is a position which is not advisable, for any investor.

A good strategy that has worked for me and many others is to have a small percentage of your investment portfolio in gold. Gold bars are a great investment because it allows you to invest in something that always will keep a good value.

Gold bullion prices will not shoot up, nor will they dive. Gold is a stable form of investment; it is far safer than the stock exchange. And several years down the line, that gold will have likely increased, at least marginally. But, there is likely to be an increase, because gold is relatively finite.

Another important factor, which I hope you will consider, is of that with an exit strategy for your investment. We all want our investments to be stable and pretty much work there course, but, we still need to consider if we wanted to convert that investment into cash and this is no different with investing into gold.

Here is where gold coins can be a good decision. Investing in gold bullion coins allows you to have multiple gold coins. You can buy gold bullion coins over time, and increase your collection.

If you wanted to convert that gold to cash, you could release a portion, without having to sell the whole thing. It is not as easy to cut up a gold bar, and get money for it!

Though gold bars have there place in investment. Imagine that you have collected several gold bullion coins. Now, you find that you have enough money to invest in a gold bullion bar. Now a gold bar could be your main investment, whereas the gold coins become the extras.

Swing trading systems capitalize on the oscillations experienced in the stock prices. In this style of trading, the returns on a stock can be gained in few days. Traders employing this style can leverage on the short term stock movements without fearing any stiff competition from the big players in the market. Swing trading systems are best suited for the at-home investors who can afford to watch over the market progress once in a day or week.

Investing tips – the stock market should present you with a wide variety of NEW stocks in 2009. Many of them are going to be new technology stocks that come from the financial, energy, & communications sectors. Investing tips – mostly seem promising, but the truth is that a good number of these trading & investing opportunities could be extremely risky, while others are simply not as good as they look. That’s why it’s very important to know how to choose among the best especially if you want to trade them the same day.

Why do so many investments fall through cracks? Experts blame everything from lack of information to wrong strategy and over-confidence about the swings in the market. Here, some tips that may get you find the tracks of investments.

1. Determine your objectives in terms of short and long term.

2. Once the objectives are finalized, seek towards the type on investments to buy.

3. Calculate the level of risk to withstand it.

4. Determine where you stand in terms of needs and goals.

5. Make sure you have time to follow through your commitments.

Investing journal – Let me begin with some of the eye – catching metrics that might lead an investor to consider purchasing shares. Investing Journal – this newspaper company has a price – to – earnings ratio of 11.3, a price – to – sales ratio of 0.93, a 5 year average return on capital of 17.6%, and a five year average pre-tax profit margin of 27.4%. Investing Journal – the Journal Register Company has an enterprise value – to – EBITDA ratio of 9.07 and an enterprise value – to – revenue ratio of 2.24. Obviously, this company is carrying a lot of debt. So, perhaps the multiples on the common stock price are deceptive.

Investing the stock market – Stock is a share in the ownership of a company. When a private company decides to divide its business and allows the public to be a part of the firm, then it sells shares of ownership through stock offerings. For example, if a company sells one million stocks and you buy one share, then you own one-millionth of that company and vice versa.

When a company sells stocks to the public for the first time, then it is called initial public offering or new issue. One of the major reasons of selling stocks is to meet the financial needs of the company for its growth and expansion. If a company plans for expansion and if the bankers of the company feel that borrowing money would be a heavy burden, they look to investors and/or shareholders to finance the growth of the company.

Investing commodities – now, brokerage firms offer a variety of investments, including equities, bonds, CDs, REITs, mutual funds, money market funds, government treasuries, real estate, options, futures, and other derivatives. The Internet, so crucial in relaying information, is an important source of data for today’s investors. The links herein relate specifically to investments and ventures.

charts candlestick – The concept of charts candlestick is said to have originated in the 18th Century as a way to analyze rice prices over periods of time. Method was immediately popular with other rice traders because it allowed five data points to be displayed simultaneously. Additionally, it was easier for rice traders to predict future demand for their rice based on the trends and patterns shown by the charts candlestick.

new investors – New investors can begin by locating a house that requires some cosmetic modifications, with a mere finishing touch to bring back its lost charm. It is better to buy houses that can be renovated easily without any heavy expense. You can update the home lighting, carpeting and plumbing fixtures. You can sell the property for a huge profit. Try to avoid houses that cannot be marketed without any major structural repairs.

oil etf – We were discussing about Exchange Traded Funds (ETF) and its use which is mainly to save commission cost and reduce volatility. There are, however, instances where buying ETF will enhance your return compared to buying one individual stocks. Buying Oil ETF and its corresponding stock is one example.

energy etf – This means that they watch the future prices and resources of the energies. For example, oil and gasoline are futures. These energy ETFs depend on the future prices of a barrel of oil as well as how much oil is being made and stored. In other words, will there be enough supply to meet the demand. If the prediction is that there won’t be enough, then the obvious follow up is that gas prices will continue to rise. Therefore, anybody owning these energy exchange traded funds are likely to make money on them.

10000 dollars – Some of the simplest strategies work the best but having 10000 dollars today to invest can be a daunting thing to do. Most investors start at the risk profile of any potential investment and doing this is the first step in making sure your investment not only pays off, but that your seed capital stays intact and is returned to you.

invest 10000 – Some of the simplest strategies work the best but having invest 10000 dollars today to invest can be a daunting thing to do. Most investors start at the risk profile of any potential investment and doing this is the first step in making sure your investment not only pays off, but that your seed capital stays intact and is returned to you.

investing 10000 – If each share costs ten cents then you can buy 10,000 shares with $1000. And if a share rises to $12 then you can easily earn $2000 by selling those 10,000 shares. You can sell the shares for $12,000 immediately after investing $10,000. That means you have not made 20% profit but its 100% gain.

http://www.my10000dollars.com/

Invests

Wise Invests As Preparation for Retirement

Saving money is a wise move especially if you are really enthusiastic about preparing for your retiring years. however, there is another option that can bring about positive reaps for profit. This happens when an individual invests in a wise investment option enough to bring about positive monetary gains in the coming days of his life. This is because when a person invests there is a chance that the savings will be compounded and increases in life in greater amounts compared to just saving money kept at home or in a savings account.

A person who invests early in life will be able to gain more for his retirement years compared to some one who invests later. There are many investment options available like stocks and securities, mutual funds, and the foreign exchange market. All of these offer chances of gaining profits for your investments. However, it can’t promise that everything will turn out fruitful every time. It is a wise decision to do your homework and be peculiar in what route you are going to travel to in terms of your investment choices.

Take time to study thoroughly each option, acquire some investment knowledge, and be cautious in dealing with brokers and other individuals in the same trade. Times are not easy nowadays so you have to be wary in order to protect every action of invests that you are planning to push through.

Securities Investment

Which Type of Securities Investment is for You?

In the simplest explanation securities investment refer to the purchase of bonds, stocks or shares, treasury bills, and debentures. This route has been recognized as a result of a more revolutionary means of investment that were once only limited for those who have big amounts of money to invest such as corporations or wealthy individuals. At present, investing in securities has also become possible and available even to the middle income persons and employees completely creating a new phenomenon in terms of the securities market resulting to an entirely new perspective, definition, and representation of investments in the world with the same objective of gaining profits for money invested.

Investing in stock refer to the sale and purchase of stock in the share market. This option is not as simple as you may think it is. You need to have deep knowledge about the season changes in the market. Also choosing a dependable broker is also part of the game play. This is especially vital to those who are still starters in this field.

The practice of investing in mutual funds would mean dealing with a mutual fund company that collects investment money from small investors and invests the same money in a variety of bonds and other securities invest in the market. These companies act as the middleman between the two parties. The risk for loosing is rather low compared to stocks since the money you invested is not solely invested in one company alone.

When you invest in bonds, it means that you are giving debt to the issuer of the bond. Payment of the debt comes within a fixed rate; meaning that even before payment you are actually aware of how much you are about to gain from your invested money in that particular bond. This is a form of a fixed rate investment. Types of investment bonds include government, corporate, treasury bills and commercial papers.

While there are different types of securities investments that you can choose from; still it is advisable that you compare the risks associated with each of them so that you can very well decide which of these securities investments can bring you higher profit returns.

When you are planning to purchase cheap houses in UK as investment properties there are a number of things to take into account, both short and long term. From where to buy investment properties, to who will manage and live in the property you’re buying.

General things to consider while purchasing cheap houses:

- Misled property investors, Rate Cuts, & First Time property buyers

- Real Life real estate

- Starting Out Small

- Analyzing the Value of investment Properties

- Leverage

- What do the property experts Say

- The Art of Negotiating

- What the great property developers do

- Adjustable Rate Mortgage Help

- Preparing for a Rental Boom

Purchasing cheap houses is a wise property investment idea for a number of reasons:

-tax benefits, how you can leverage other people’s money

-appreciation

-cash flow via rental payments.

You must be able to adapt as whatever new market conditions are emerging. As a property investor always try to work with available opportunities–no matter what type of market you are facing. To find a proper investment properties in UK search in emerging markets. Then only you will be able to earn significant profits from using powerful relationships with realestate agents. Websites offers online property investment information such as

- Preconstruction investment properties

- New construction investment properties

- Residential investment properties

- Commercial investment listings

- Property investment advice

- Property investment information’s

- Proper resources etc.

To find fortitude and investment opportunities in suitable location for your comfort you must search online to gather property investment information’s. As realestate websites simply builds big networks of property investors for oversea properties and leverage the power of online investment properties industry to the mutual benefit of property purchasers involved. The projection of this high growth rate trajectory primarily stems from the fact that opportunities in UK are simply immense.

Property investment in UK offers all types of investment properties, be it a residential or commercial property. Investment properties in UK have become a great opportunity in recent times with property investors who are finding it profitable to invest in cheap houses. Property investment if carefully done can take property builders a good wealth. Nowadays low mortgage rates and rising investment property prices, investing in UK properties can be an ideal choice. Invest in cheap houses in UK offers a good option to develop equity while having the potential for capital gains. Property investment seminars are conducted by all leading financial institutions on investment properties such as apartments, offices, retail or industrial buildings.

By.-  http://www.MomentumStockTrading.com

The stock market should present you with a wide variety of NEW hot stocks in 2009. Many of them are going to be new technology stocks that come from the nanotech, biotech, financial, energy, healthcare & communications sectors.

Most of them might seem promising, but the truth is that a good number of these trading & investing opportunities could be extremely risky, while others are simply not as good as they look. That’s why it’s very important to know how to choose among the best especially if you want to day trade them.

When you know how to pick and approach the best hot stock trading opportunities, you are able to generate a consistent and respectable amount of money in a very short period of time.

Experienced day traders recognize that trading hot stocks on momentum can be the fastest way to make money in the stock market, especially on uncertain times like these.

You don’t necessarily have to trade momentum hot stocks all the time. But you can learn how to take advantage of them when you encounter the best opportunities for going long or for shorting them to make money when they are poised to fall down.

If You decide to day trade stocks just keep always in mind that for a trader to survive and be consistently profitable, its necessary to keep things as simple as possible. To much confusion and technical indicators will most of the time make you slow in your decisions and froze you up when a good opportunity is right in front of your screen.

In the end, stock market day trading is all about picking the best daily stock opportunities and following your buy and sell signals with ease and simplicity. Once you learn to master your trading decisions, you can aspire to produce consistent profitable results.

In our investment work when we get involved in stock investing, we do hands on stock research. Here are 12 basic stock investing rules that you may follow for successful trading. The stock market is driven by earnings, and a good stock investing course will teach you to judge the emotional state of the stock market.

Basic concept behind stock investing before getting involved in the stock trading, you should be well versed with its concept as this will help you in achieving success every time you trade. Now with all these information presented to you, it is now your choice whether you will get involved in penny stock investing. With ETF investing, you get the best of stock investing (ease of trading) and the best of mutual fund investing (built-in diversification) all in one investment vehicle.

When taking a stock investing course you may learn a few things that your broker may not even be aware of. Unlike stock investing, you need strong credit to use other people’s money to finance investment property. As you might imagine, the ads under stocks generally (which includes broad search terms like ’stock investing’) are seen the most, because most searchers begin with generic inquiries.

So if you are new to investing in the stock market take some time and learn how to by taking a stock investing course. Stock investing is relatively volatile and full of uncertainty. The more forex stock investing trades you make with a high probability of success, the more successful you will be.

Stock investing takes a great deal of research however if you make good investing decisions, it can have a high rate of return. Stock investing is a popular tool that many use for creating wealth. It is not difficult at all to succeed in stock investing.

They don’t know anything about stock investing and they often lose a few thousand dollars very quickly. You have to weigh both the pros and the cons of small cap stock investing before you sink any of your hard earned money into anything. In the real world, the world of stock investing, you should always put money after your best ideas.

It is also the hardest part to master in stock investing. Penny stock investing is a junior level course at least. Fraudsters don’t think twice before developing stock investing, commodity or option trading courses to make a little extra money for themselves regardless of whether or not what they teach helps their students.

Also, online stock investing has opened the door wide for overseas stock trading, giving you more investment opportunities than ever. In this manner, stock investing is much like surfing: spotting when or when not to ride the waves. So, before putting any money into stocks, the first question you should ask is what do you want to achieve with stock investing.

The second richest man in the world, Warren Buffett, has made his millions from stock investing. Social networking has been intergraded into many stock investing courses. When you take a closer look, the alternative means of extra income via stock investing is just a spin-off of earning from a business.

Online stock investing has helped a lot in saving time and money by enjoying the thrill of trade at your convenience in the ambience of your home. What any ‘vexed’ shareholders are forgetting, and he is not, is that Rule 1 in stock investing is, don’t lose money. Penny stock investing can be profitable.