The Australian Stock Exchange Essay Research Paper — страница 2

diversification from it’s traditional NSW gas and nationwide transmission businesses into Victoria, together with the recent completion of the Bellara-Mount Isa gas line, the start up of the Roma-Brisbane line, and a possible PNG-Queensland line, all combine to strengthen the group by increasing the levels of gas throughput and enlarging the number of energy customers. Greater competition from a deregulated market provides further opportunities as gas prices fall, demand increases, volume rise, and gas haulage revenues rise. As expansion and high profit making is to come in the future, I would buy now while the price is at a low. This investment is still a risky one and there are no foundations from which we can give fact that the price will definitely rise. Since this is only

a 5 year investment, the full impact of the rise in the share prices will not be felt so I expect a price of $15.50 per share. B.T. Hi Yield- return rate of 3.97% per annum = $250009.30 This particular cash trust seems to give the highest rate of return. It is very low risk, I have a guaranteed return of 3.97% per year. Portfolio Initially? Shares SecurityPriceNumber HeldValue Telstra$4.4022727$99,998.80 National Australia Bank$22.404464$99,993.60 Australian Gas Light Co.$10.904587$49,998.30 Cash Trusts Trust NameReturn RateMoney InvestedYears Invested B.T. Hi Yield3.97$250,009.305 ?After 5 years Shares SecurityPrice Number HeldValueGross ProfitNet Profit Telstra$17.6022727$399,995.20$399,995.20$299,996.40 National Australia Bank$44.804464$199,987.20$199,987.20$1,899,993.40

Australian Gas Light Co.$15.504587$71,098.50$71,098.50$21,100.20 Cash Trusts Trust NameReturn RateMoney InvestedYears InvestedGross ProfitNet Profit B.T. Hi Yield3.97$250,009.305$303,735.88$53,726.58 Total Net Profit$2,274,816.50 My total profit after expenses are taken into account is $2,274,816.50. One requirement to be met was my expected return rate must average out to in excess of the current government bond interest rate. The government bond rate today is 5.75%, my portfolio has over 5 years matured to 401%, a very successful investment portfolio indeed. My investments are diversified and 20% of my securities can be easily converted into cash. I have invested 50% of my money into B.T. Hi Yield Cash Funds which is a low risk investment and have met all the requirements my

portfolio was expected to obtain. Part 2 Industrial shares, Mining and oil shares, Company debentures and Government bonds (a) Industrial shares (b) Mining and oil shares (c) Company debentures (d) Government bonds What effect will an increase in the general level of interest rates have on a, b, c and d. When interest rate levels rise, companies tend to borrow less. This cause them to invest less in themselves and on employee wages, in some extreme cases employee wages can drop or employees can be sacked. The demand will decrease for a, b, c and d. What effect will a general downturn in economic conditions have on a, b, c and d. When this happens the economy is obviously not producing enough and therefore supply for all will go down. Demand will also decrease because investors do

not want to invest in poor producing companies. What effect will an increase by Japan in it’s economic output of manufactured goods have on a, b, c and d. There will be an increase in demand of Japanese goods. Therefore we must export more to repay our debts, demand and supply both increase for a, b, c, and d. What effect will a marked improvement in our balance of payments have on a, b, c and d. All will have an increase in demand. An improvement in the balance of payments mean that the whole economy is doing well. What effect will a rapid increase in the world price of gold have on a, b, c and d. As gold value has increased there will be a decrease in demand for a, c and d. Mining and oil shares (b) will increase in demand, because obviously to obtain gold it must be mined.

Part 3 Buy And Sell Theories Of Shares The Fundamental Approach Economics, financial management and accounting from the basis of this approach, but don’t let that deter you from using it as an investment strategy . The details of this approach can be learnt, yet all one really needs is an advisor with a strong company research to support his or her recommendations. A practical procedure for the investor is to learn enough to recognize why an investment has been recommended, to cultivate the ability to ask the right questions, and to delve into the reasons for the recommendation. With the fundamental approach, the emphasis is on the company: it’s past, present and potential performance. With this approach, the analyst or investor seeks companies which are undervalued. A major