Explore BrainMass

Basics of Capital Market Investment Strategies

Mary Francis comes into your office later that morning.

"Good news! I think we've got strong potential investors!" Mary announces.

"That's great!" you reply.

"And now, they are asking for financial information" Mary states.

"Ok, I could provide a 50-page analysis for them!" you say.

"That's exactly what they don't want. I'm beginning to notice that some of the investors don't have a strong finance background, and the last thing we want to do is scare them off with too many financial figures" Mary explains. I would like for you to complete a presentation. However, I want you to keep it simple and clear. Using all 3 financial statements, please provide an analysis on Apix's assets, liabilities, cash, and profit. As well, choose 2 additional components on each of the sheets, and provide your initial impression on the company financial situation. Do you think you could handle this?"

"Of course! I'll get started on this right away."

Mary also indicates that she would like between 10-15 slides with 150-200 words in the notes page

Solution Summary

Investors often estimate the possibility of making high profits in a short period of time and they also tend to take a faster exit from the capital market. Investors can get lured to invest money looking at the 'short-term high price rally of capital market'; however, the same investor can get scared of 'making a loss in the short-term low price rally of capital market'. Due to this fear the investor may withdraw the investment from the market. The withdrawal may cause distrust and disappointment for the investor towards the capital market. We focus on brilliance in capital market investment strategies which will allow the investor to make money by being patient and calm even in the face of a falling capital market and methodically exit from the market or methodically maintain position in the market.