What is the difference between a retail investor and a non-institutional bidder?
Getting more to the point, can anyone be a non-institutional bidder or is there something you have need of to do to be one? For example with the recent Reliance Power IPO, retain investorts can invest up to 1lac while non-institutional bidders can bid more. Is the just difference the amount they invest?Answers: Investors can apply for shares in an IPO surrounded by 4 different categories:
1. Retail Individual Investor (RII)
In retail individual investor category, investors can not apply for more consequently Rs one lakh (Rs 1,00,000) in an IPO. Retail Individual investors hold an allocation of 35% of shares of the total issue size in Book Build IPO's.
NRI's who apply beside less later Rs 1,00,000 /- are also considered as RII category.
2. High Networth Individual (HNI)
If retail investor applies more then Rs 1,00,000 /- of shares surrounded by an IPO, they are considered as HNI.
3. Non-institutional bidders
Individual investors, NRI's, companies, trusts etc who bid for more then Rs 1 lakhs are prearranged as Non-institutional bidders. They need not to register next to SEBI like RII's. Non-institutional bidders hold an allocation of 15% of shares of the total issue size in Book Build IPO's.
4. Qualified Institutional Bidders (QIB's)
Financial Institutions, Banks, FII's and Mutual Funds who are registered near SEBI are called QIB's. They usually apply surrounded by very lofty quantities.
QIB's enjoy an allocation of 50% of shares of the total issue size in Book Build IPO's.
In a book built issue allocation to Retail Individual Investors (RIIs), Non Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) is within the ratio of 35:15: 50 respectively.
What is a portfolio? How can investors reduce investment risk by constructing an investment portfolio?
Answers: A portfolio is a collection of something: An artist may have a portfolio of his art works, a model may have a portfolio of photos, a consultant may have a portfolio of clients, and an investor may have a portfolio of securities.
An investment portfolio is constructed to reduce risk by including in it a variety of securities, whereby a stock that goes down in value is offset by other stocks that go up in value. Stocks in volatile industries are offset by stocks in stable industries. Risky stocks are balanced by secure bonds. Risk is reduced by holding a portfolio of diversified investments.
You will find exactly what you are looking for here:
http://www.marketwatch.com/Search/?prope...
A financial portfolio is a collection of investments. You can reduce risk by diversifying a portfolio, meaning that you include different types of asset classes, so that not all of your savings are concentrated in any one type of investment.
Northern Rock shareholders - no shame?
The shareholders have a total investment something similar to 1% of the amount the taxpayer has 'at risk'.(lb600,000,000 vs lb60,000,000,000)
And they are still crowing more or less protecting their investment over the taxpayers interest?
Given the shareholders obvious incompetence (demonstrated by their investing is such a duff company), are the rates payer really expected to take insist on from them?!!
Pull the plug, let the company shift into administration - zilch for the shareholders - taxpayer gets first dibs, and tolerate them fight over anything explicitly left.
Answers: And how come the elected representatives is propping Northern Rock up when people who spent their in one piece life putting their money into an Equitable Life Pension lost everything??
Surely protecting pensions (which be government recommended surrounded by the first place) is far more important?!
Not forgetting the reality that most shareholders got their shares for nought, so they are still in profit.