Equity Investment

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Joined: Mon Feb 23, 2015 3:38 am

Equity Investment

Postby canipungoel » Wed Mar 25, 2015 12:24 pm

Q-1 What is the meaning of Shelf Registration?
Q-2 What is the meaning of Opaque market?
Q-3 What is the meaning of Transient Relations?
Q-4 In short selling, if the security is difficult to borrow then the short rebate may be lower or negative? Please make me understand the reason for that with example.

Posts: 3
Joined: Sun Jun 08, 2014 4:04 pm

Equity Investment

Postby ketanwalia27 » Wed Mar 25, 2015 1:22 pm

Hi ,,an attempt to Ans following Questions..

A1 Shelf Registration is done at time of IPO a master prospectus for the prepared for the investors
A2 Opaque market is the shadow market or Grey market from where we can always get a quote of securities at a time when they are not traded at the normal Exchanges or even the securities that are not listed in exchange
A3 Transient Relations: Remaining in a place only a brief time Eg: could be whenever its Rains we get a good Returns in S&P FMCG baskets . It is just a momentary relationship which is short lived
A4 Short selling ( is the borrowing of funds for the purpose / intent to Own securities for shorting (selling) them down in the near future by the Dealers . The Cost of borrowing for Financing this trade is called the interest rate . whenever there is a huge borrowing or Repeat borrowing done by a dealer then he get some discount on these rate of interest ( borrowing cost) hence he gets some Rebated on these borrowing costs . Hence its Lower rates are offered .

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