Overview of the Equities, Funds, Bonds Sectors
Companies that operate in the Equities, Funds and Bonds sectors
investment funds, which are managed by way of an index. There are many types
of specialist providers...
Biotechnology Funds are exchange-traded funds (ETF) that are related to
the industry of research into organisms and biology. Any company that relates to
or works towards the development of creating services and products relating to
health care, agriculture and the environment; may belong to an ETF. This could
be a company such as GlaxoSmithKline, who deal with the manufacture and
development of drugs designed to combat and treat several conditions and
illnesses. To invest in companies within the Biotechnology industry is
considerably more unpredictable than the broader market of shares within the
stock market as they tend to be more turbulent thus resulting in
highly-fluctuating share prices.
Bonds are when someone such as an individual or company loans money to a
corporate or government unit, under the understanding that it is within a
certain time frame and the interest on money borrowed is repaid at a certain
fixed interest rate. Many companies and heads of countries use bonds in order to
finance projects or to fund state and government related activities. In effect,
it is a debt or an IOU that the holders of the loan are under contract, to repay
the issuer within the terms stated by the bond.
Equities are the profit relating to an asset or shares owned by a company
or individual. This could be the difference in the price of a house that has
been purchased at a specific price and increased in value thus giving the
homeowner equity of the difference between the price paid and profit made after
the mortgage has been paid off. It is the same for someone purchasing a company,
stock are also considered to be equity as they indicate ownership of a company
Money that has been invested by several people as part of a management firm or
partnership is a ‘pooled investment’ known as a Hedge Fund. These allow
their investors to withdraw and top up their investments and the manager of the
fund may invest his own money which will serve a purpose of aligning their own
stake in the investment fund as well as others who have also invested into it.
The Hedge Fund manager is allowed to draw an annual management fee from the fund
as well as a performance fee if the ‘net asset value’ rises throughout the year.
Money Managers are wholly responsible for overseeing the procedure of an
investor and deem how much of a potential risk they may be. He will draw a fee
for managing the investment as well as a team of staff who have to research and
monitor potential investment opportunities and decide the optimum time to sell
assets and shares.
When someone wagers on the outcome of an event which is based on factual
knowledge of the bet rather than a ‘Heads or Tails’ scenario, this is known as
Spread Betting. In recent years, there have been major concerns relating
to the process of spread betting as gamblers are almost totalling one million
and the market have seen huge growth in this field. The risk of losing huge
amounts is quite often a reality when it comes to assessing what one can lose in
comparison with their original investment.
The Stock Exchange is the whole activity of buying and selling stocks,
bonds and shares and overseeing dividends. Everything that is available for
trade must be listed and usually there are central locations designed for
record-keeping, but as modern technology has evolved, the process of exchanging
stocks has become more of a ‘cyber market’ and less of a physical place.
Registrars keep records of who owns shares and what company they relate
to. By archiving their records, are able to trace back and help to establish
ownership when investors have lost paperwork or essential documents. They are
also responsible for ensuring that share dividends are paid out on time and to
the correct person. Capita, Equiniti and Computershare are the three main
registrars within the UK. Split Shares occur when a company increases the
amount of shares in their company and adjusts the price accordingly. This means
that after market capitalization, the value remains the same and no dilution
occurs but there is a different ratio of shares within the company.
Technology Stocks are stocks relating to businesses that produce and
create software and work within the IT industry. The stocks could be from the
research and the development side of the industry or relate to the distribution
of their goods and services.
Anyone needing to source information about Equities, Funds and Bonds can do so
online by finding a business directory (such as thebusinessindex.com)
which may show listings of reputable companies as well as reviews and contact
We do not provide financial advice. This webpage is a general guide. You should
always seek professional advice before making any find of financial decision.