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Postby pooja923 » Sat Apr 30, 2016 9:41 am

Q1> What is the difference between active and passive investment strategy? Which strategy should be used in weak and semi strong efficient market?

Q2>Consider a senario where you purchase a stock of Rs 100. 50% is the inital margin requirement and maintainance margin is 25%. Now the current market price is Rs 120.
Margin call price is Rs 66.67. What does this margin call implies?
Increase in price to Rs 120 will affects the inital margin to increase by how much? what will happen if the price goes down to 60?


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Re: Equity

Postby edupristine » Sat May 07, 2016 8:04 am

Hi Pooja

Active Investment- active investment is ongoing buying and selling actions by the investor. Active investors purchase investments and continuously monitor their activity in order to exploit profitable condition.
Passive Investment- Passive investment is an investment strategy involving limited ongoing buying & selling actions.

Margin Call- margin call is a demand by a broker that an investor deposit further cash or securities to cover possible losses.

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