Page 6 - Introduction To Investment Management

Table of Contents

1.0 INTRODUCTION TO INVESTMENT ....................................................... 7
1.1 INTRODUCTION..................................................................................... 8

1.2 DEFINITION OF INVESTMENT ........................................................... 9
1.3 INVESTMENT VS SPECULATION ..................................................... 10
1.4 THE IMPORTANCE OF INVESTMENT ............................................. 11
1.5 FINANCIAL SYSTEM’S USERS/CLIENTS ........................................ 12

2.0 MALAYSIAN EQUITY MARKETS AND TRANSACTIONS ............... 22
2.1 INTRODUCTION................................................................................... 23

2.2 TYPES OF MARKET AND FINANCIAL INSTRUMENTS ............... 23
2.2.1 Money Market .................................................................................. 24
2.2.2 Capital Markets ................................................................................ 29

2.2.3 Derivatives Market .......................................................................... 33
2.2.4 Different between Money Market and Capital Market .................... 34
2.3 INITIAL PUBLIC OFFERING (IPO) .................................................... 35

2.3.1 The Procedure involved in IPO ....................................................... 36
2.3.2 The reasons for IPO ......................................................................... 37
2.3.3 The Roles of Investment Bank ......................................................... 38

2.4 BURSA MALAYSIA ............................................................................. 39
2.4.1 The Development of Bursa Malaysia .............................................. 41
2.4.2 Roles of Bursa Malaysia .................................................................. 43

2.4.3 Main Market and ACE Market ........................................................ 43
2.5 SECURITIES COMMISSION ................................................................ 45
2.6 MECHANICS OF TRADING PROCEDURES IN BURSA MALAYSIA
45
2.6.1 Transaction Cost involve in Trading on Bursa Malaysia Berhad .... 47

2.6.2 Types of Orders ............................................................................... 48
2.6.3 Bullish or Bearish ............................................................................ 49

2.6.4 Trading Information ......................................................................... 50
2.6.5 Market Indices ................................................................................. 50

6