1. Why investors prefer to invest in an investment fund rather than investing directly in shares?
2. What is the real price (not nominal price) of the bond .Please explain why the bond does not entitle the bond holder an equity right in the issuing company?
3. An investment fund could be open ended or closed ended one. In which one you prefer to invest your money and why.
4. Explain why capital adequacy of a financial intermediary COMPANY should be maintained by this company as a condition for the company to be licensed by the regulator.
5. 13. Invetors in securities face two types of risk 1- investment risk and2- market operation risk. The investor can combat investment risk by diversifying his investment but the operation risk can be eliminated by the depository, custodian and financial settlement system. Explain briefly how.