State two objectives of security analyses.
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The two main objectives of security analyses:
1) Regular Income : the income for the investment should be regular and consistent one. The high fluctuation is income stream is not suitable for the long term growth.
2) Capital appreciation : the investment must yield regular income as well as growth in value that is capital appreciation
1) Regular Income : the income for the investment should be regular and consistent one. The high fluctuation is income stream is not suitable for the long term growth.
2) Capital appreciation : the investment must yield regular income as well as growth in value that is capital appreciation
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Security analysis stands for the analysis of financial instruments that are tradeable under the name of securities. It refers to the analysis of the proper value of the individual securities like stocks, shares, bonds, etc.
There are many objectives of security analysis. They are -Capital appreciation, regular income, the safety of capital, Hedge against Inflation, and Liquidity.
1. Capital appreciation - it is the difference in between the selling price and the purchased price. The investment should grow in its value.
2. Regular income - The investment should give a stable and a regular income.
There are many objectives of security analysis. They are -Capital appreciation, regular income, the safety of capital, Hedge against Inflation, and Liquidity.
1. Capital appreciation - it is the difference in between the selling price and the purchased price. The investment should grow in its value.
2. Regular income - The investment should give a stable and a regular income.
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