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Study the following case/situation and express your opinion:Mr. Rohit, an individual investor, invests his own funds in the securities. He depends on investment income and does not want to take any risk. He is interested in the definite rate of income and safety of the principal.(a). Name the type of security that Mr. Rohit will opt for.(b). What does he receive as a return on his investment?(c). The return on investment which he receives is fixed or fluctuating. |
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Answer» (a) As Mr. Rohit does not want to take risks, he will opt for preference shares which will assure him of steady income and safety of his investment. (b) Mr. Rohit will receive dividends in return. (c) The return on his investment will be fixed and not fluctuating. |
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