An unincorporated mutual fund structure that allows funds to hold assets and pass profits through to the individual owners, rather than reinvesting them back into the fund. The investment fund is set up under a trust deed. The investor is effectively the beneficiary under the trust.
Unit trusts are close-ended investments; therefore the underlying value of the assets is always directly represented by the total number of units issued multiplied by the unit price less the transaction or management fee charged and any other associated costs. Each fund has a specified investment objective to determine the management aims and limitations.
A stock market or equity market is a public entity (a
loose network of economic transactions, not a physical facility or
discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.
The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization
specialized in the business of bringing buyers and sellers of the
organizations to a listing of stocks and securities together. The
largest stock market in the United States, by market capitalization, is the New York Stock Exchange (NYSE).
Market participants include individual retail investors, institutional
investors such as mutual funds, banks, insurance companies and hedge
funds, and also publicly traded corporations trading in their own
shares. Some studies have suggested that institutional investors and
corporations trading in their own shares generally receive higher
risk-adjusted returns than retail investors
"Return on investment is one way of considering profits in relation to capital invested.
A performance measure used to evaluate the efficiency of an investment
or to compare the efficiency of a number of different investments. To
calculate ROI, the benefit (return) of an investment is divided by the
cost of the investment; the result is expressed as a percentage or a
ratio.
The return on investment formula:
In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.
Read more: http://www.investopedia.com
The return on investment formula:
In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.
Read more: http://www.investopedia.com